Goldman Sachs To Spend $621 Million Fine to Settle SEC Fraud Case

Janet Tavakoli is absolutely correct when she says that the SEC is totally incompetent:

– Janet Tavakoli and David Fry on Financial Reform & Goldman Sachs Lawsuit

Just to put $621 million into perspective:

– Perfect Timing: Goldman Sachs Set to Pay £3.5 Billion in Bonuses For Just 3 Months’ Work! (Times)

“Champagne for EVERYBODY!!!”

Goldman Sachs Likely to Settle SEC Case, Hintz Says: Tom Keene

June 1 (Bloomberg) — Goldman Sachs Group Inc. will probably settle a lawsuit brought by the Securities and Exchange Commission at a cost of a little more than $1 a share, Sanford Bernstein & Co. analyst Bradley Hintz said.

Goldman Sachs’s franchise is “holding it together” amid the accusations of fraud involving a collateralized debt obligation, Hintz said today in an interview with Tom Keene on Bloomberg Radio. Hintz said his price estimate for Goldman Sachs’s stock is still above $200 and said it is the best “buy” among U.S. banks.

“Having your name in the headlines and being an adversary to your regulator is not good for you,” Hintz said. “I think the issue is, when will the settlement come?”

The SEC’s April 16 complaint accused Goldman Sachs of defrauding investors in a CDO linked to home loans known as Abacus 2007-AC1. The firm concealed the fact that Paulson & Co., a New York-based hedge fund, picked components of the CDO and bet it would collapse, the SEC said. Goldman Sachs has said it did nothing wrong and will fight the allegations.

The New York-based firm’s stock has dropped 22 percent since the SEC lawsuit was filed through May 28, making it the worst performer among the 10 largest U.S. banks by assets in 2010. Goldman Sachs reported profit of $22.13 a share in 2009 and $5.59 a share in the first quarter.

Hintz said in a note last week that Goldman Sachs may spend about $621 million to settle the case.

To contact the reporters on this story: Michael J. Moore in New York at [email protected]; Tom Keene in New York at [email protected]

Last Updated: June 1, 2010 12:15 EDT
By Michael J. Moore and Tom Keene

Source: Bloomberg

More on Goldman Sachs ‘doing God’s work’:

– Max Keiser: Big Banks Retroactively Allocate Losing Trades to Clients, Keep Winning Trades for Themselves

– Stock Market Collapse: More Goldman Sachs Market Rigging?!

– Dr. Len Horowitz: Profitable Depopulation Plot Links JPMorgan and Goldman Sachs to Vaccination Contaminations and Big Pharma Corruption

– Goldman Sachs Bankster Blankfein Supports Financial Reform Bill

– Goldman Sachs Banksters ‘Made Fortune Betting Against Clients’

– Computerized Front-Running: How a Computer Program Designed to Save the Free Market Turned Into a Monster

– Goldman Sachs taps President Obama’s former White House counsel, Gregory Craig

– President Obama Repaying His Masters At Goldman Sachs

– Goldman Sachs Banksters Implicated in Shorting Lehman Shares

– Perfect Timing: Goldman Sachs Set to Pay £3.5 Billion in Bonuses For Just 3 Months’ Work!

– SEC Accuses Goldman Sachs of Civil Fraud

– Looting Main Street: How the nation’s biggest banks are ripping off American cities with the same predatory deals that brought down Greece

– Goldman Sachs Squeezes Hedge Funds in $110 Billion ‘Collateral Arbitrage’

– Goldman Sucks

– Banksters Bet Greece Defaults on Debt They Helped Hide

– Secret AIG Document Shows That Goldman Sachs Minted Most Toxic CDOs

– Here Comes The Next Bubble: Carbon Trading

– Greek Debt Crisis: How Goldman Sachs Helped Greece to Mask its True Debt

– The CDS Puppetmaster Behind It All And The Ever Increasing Parallels Between AIG And Greece

– The Illuminati Banksters: JPMorgan vs. Goldman Sachs

– Secret Banking Cabal Emerges From AIG Shadows

– America’s Impending Master Class Dictatorship!

– Ron Paul on FOX NEWS: Wall Street Bailout FRAUD

– The No.1 Trend Forecaster Gerald Celente: Financial Mafia Controlling US and Wall Street

– How Goldman Sachs Made Tens Of Billions From The Economic Collapse Of America In Four Easy Steps

– Goldman Sachs: Investors Could Only Lose in Offshore Deals

– Goldman Sachs: Betting Against All of Us

– Chinese firm says won’t pay Goldman Sachs on options losses!

– Goldman Sachs Banksters Arming Themselves With Pistols Against Public

– Goldman Sachs CEO Lloyd Blankfein: I’m doing ‘God’s work’

– Wall Street Banksters To Pay $30 Billion Record Bonuses In 2009

– Absolute Perfection: Goldman Sachs Loses Money On Just One Trading Day In Q3

– Goldman Sachs: Trading Perfection And Statistical Improbabilities

– Goldman Sachs Takes On New Role: Taking Away People’s Homes

– CIT Bankruptcy Filing Expected in Days; $2.3 Billion Taxpayer Money to Be Wiped Out; Goldman Sachs Receives $285 Million In Termination Fees

– New York Fed’s Secret Choice to Pay for AIG Swaps Squandered Billions of Taxpayer Money:

…and remember who got the bailout money back then:
– AIG Discloses Counterparties as Obama, Cuomo Assail Bonuses:
This time the bailout money from the U.S. taxpayer went to:
Goldman Sachs led beneficiaries, with $12.9 billion, followed by SocGen, France’s No. 3 bank, with $11.9 billion, and Deutsche Bank, Germany’s biggest lender, with $11.8 billion. Barclays Plc received $8.5 billion from AIG, Merrill Lynch & Co. got $6.8 billion, Bank of America Corp. got $5.2 billion and UBS AG got $5 billion.