What is Goldman Sachs fraud?

20 10 On the morning of April 6, the US Securities and Exchange Commission (SEC) filed a civil lawsuit against Goldman Sachs Group and its vice president FabriceTourre, claiming that the company misled investors by concealing key facts when selling a financial product related to subprime loans to investors. The US Securities and Exchange Commission accused Torre of being mainly responsible for the fraud. Goldman Sachs responded on the same day, denying all allegations and saying that it would actively defend and maintain the company's reputation.

The Securities and Futures Commission accused Goldman Sachs of designing and selling a composite CDO based on subprime mortgage bonds (RMBS) in early 2007, when the US housing market and its related securities began to show signs of weakness. The China Securities Regulatory Commission said that Goldman Sachs failed to disclose key information about CDO to investors, especially a large hedge fund, Paulson &: Co, which played an important role in selecting subprime mortgage bonds that constituted CDO. More seriously, Paulson Fund Company chose to short this CDO.

For this transaction, Paulson Fund paid Goldman Sachs about $654.38+0.5 million in design and marketing expenses in 2007, but this transaction brought it as much as $654.38+0 billion, which was paid by the investor of the CDO.