Losing this case in court would have convinced many Americans that we need new criminal laws to control the banksters.
Goldman Dodges Another Bullet, SEC Drops Subprime Securities Fraud Allegations
By Adam Pasick
Today at 12:27 PM
New York Magazine
Goldman Sachs disclosed in a regulatory statement that the SEC has flip-flopped on a threat it made in February to seek damages against the bank for $1.3 billion worth of subprime mortgage securities that it sold in 2006. The bundled 5,000 mortgages ended up costing investors and taxpayers an estimated $545 million when they went sour.
The SEC had previously said it planned to sue Goldman over the deal, claiming that it knew the mortgages were bad even by the sketchy standards of the housing boom. The agency's about-face highlights the almost complete inability of regulators and law enforcement to hold anyone accountable for the crash. Goldman said it was “notified by the S.E.C. staff that the investigation into this offering has been completed, and that the staff does not intend to recommend any enforcement action.”
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