So it seems that Goldman is going to pay the civil suit that the SEC brought against it for a sum of $300mm and compensate investors who invested in those CDOs a further $250mm.
Am I the only one who see the compete idiocy of this? They could have done this before it came to light and instead dragged out a PR nightmare and, while legally admitting no wrong, appear to be paying the problem away. It would have probably been horrible had they gone to court, because even if they were not convicted- it could have had very deep implications for their revenue streams and business (investor monies, commercial paper, credit rating etc.)
It also seems odd to me that the timing of every Goldman "revelation" seems to coincide with a key moment in financial reform. The Senate just passed the final bill today, and it got through committee around the time it was revealed GS was being sued. As a huge backer of the reform (I have no idea why) GS seems to be getting all the bad news at just the right time.
I agree they should have avoid PR but I'm not sure if I'd call what they went through a PR "nightmare". Apple's conference tomorrow? Now that will be a PR Nightmare.
definitely thought they were gonna get out of this one somehow...
All things considered this is a very favourable settlement. Not long ago some were speculating about a settlement as high as $15 billion: http://dealbook.blogs.nytimes.com/2010/06/11/what-if-goldmans-settlemen…
It's about time they settle. I remember thinking a number of days ago something like, what is happening with the Goldman Sachs case? Now I know.
$550mm. So 5.5 days of trading revenue?
I think this works out favorably for both parties. SEC gets their money and they feel good; Goldman gets to move on keep doing "God's work".
OP: 'paying the problem away'? TYI: 'move on'?
i think that's on the money. that's just a part of doing business: you gotta find a way to move on. make a half-assed apology, and some of your problems go away
they ain't one bit sorry. i mean, commentators and even amateur bloggers don't think goldman sachs did anything illegal or immoral. think of how lloyd and co would feel!
hahahaha The House wins again. Sorry about that SEC.
It is strange how all of Goldman's news has been overshadowed by other larger stories...someone is definitely playing a good puppet master game with the news here.
schifm08's right - Apple's PR conference today @ 10a.m. is going to be a PR disaster - GS got away with a steal on this one.
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