Goldman Sachs Pays $550 Million Penalty to SEC for ‘Shi**y’ Deals

July 16, 2010

(ChattahBox)—Lost in the busy news cycle on Thursday, was Goldman Sachs’ settlement with the SEC, in a suit for fraud brought against the financial firm in April for so-called “shitty” sub-prime mortgage deals. Remember those? The crappy collateralized debt obligations, that Goldman turned around and bet against after schilling them to investors? Well, Goldman just agreed to pay the SEC $550 million for its “shitty deals” that nearly tanked our entire economy. It’s one of the single largest fines ever paid to to federal government by a Wall Street firm. But is it enough? Shouldn’t all those greedy fat cats also be made to survive on the average American’s unemployment check for a year? Maybe they should all have their homes foreclosed upon, to experience the horror and homelessness they inflicted on thousands of hard-working Americans. Just a thought.

The settlement agreement with the SEC provides for restitution to burned investors, but nothing for former homeowners lured into shady sub-prime mortgages by predatory lenders. And part of the deal is that Goldman admits to no wrongdoing:

“Under the terms of the deal, Goldman will pay $300 million in fines to the Treasury Department, with the rest serving as restitution to investors in the mortgage-linked security. Goldman will not admit wrongdoing, though it will admit that its marketing materials for the investment “contained incomplete information.”

Goldman also agreed to rewrite its marketing materials on complicated mortgage investments.

And so it goes.


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