So I know I’m late putting this up, but I wanted to anyway. One of the news items I’ve more recently become interested in is the alleged misconduct by Goldman Sachs, an investment banking firm in New York City. Goldman (not referred to as Sachs, I’m assuming, because of the laughter that would ensue) recently was charged by the U.S. Securities and Exchange Commission with defrauding investors by selling them mortgage investments that ultimately were doomed to fail.
Now, internal e-mails show the firm totally knew it was going to profit from the tanking housing market by betting against it. In what’s the latest in a bad bit of PR for the firm, the e-mails between Goldman executives (revealed with documents from a Senate investigation) show the company analyzed the market in a way where they could profit from failing mortgage rates. The company argues to the contrary, saying it lost money rather than gained it.
The Goldman Sachs brouhaha comes at a time when white collar crime in the wake of the economic crisis is becoming more commonplace (or at least more easily identifiable). Obviously, chalking this instance up to crime is not accurate because until Goldman is found guilty of the SEC’s charges, the firm is innocent. Nonetheless, as with most things of this nature, it’ll be interesting to see how things pan out.
By Zane McMillin