‘A masterpiece of fiction is an original world and as such is not likely to fit the world of the reader.’ –Nabokov
Goldman Sachs Group Inc was charged with fraud by the U.S. Securities and Exchange Commission over its marketing of a debt product tied to subprime mortgages that was designed to fail.
The lawsuit is the biggest crisis in years for Goldman, which emerged from the global financial crisis as Wall Street’s most influential bank. (…)
The SEC alleged that Paulson & Co, a major hedge fund run by billionaire John Paulson, worked with Goldman in creating a collateralized debt obligation, and stood to benefit as its value fell, costing investors more than $1 billion. That is roughly the amount that Paulson is estimated to have made by betting against the CDO.
