Goldman Settles With S.E.C. for $550 Million (Largest Ever Against Financial Services Firm)

[Hissyspit]

Source: New York Times

Goldman Settles With S.E.C. for $550 Million
July 15, 2010, 4:17 PM

4:34 p.m. | Updated The S.E.C. has confirmed that Goldman Sachs will pay $550 million to settle securities fraud charges, the largest penalty ever paid by a Wall Street firm.

Goldman Sachs has agreed to pay $550 million to the Securities and Exchange Commission to settle charges of securities fraud linked to mortgage investments sold to investors, a person briefed on the matter told The New York Times’s Edward Wyatt. Under the terms of the deal, Goldman will pay $300 million in fines to the S.E.C., with the rest serving as restitution, this person said. Goldman will not admit wrongdoing.

Goldman’s stock price climbed more than $5 in the last half-hour of trading after the S.E.C. said its director of enforcement, Robert Khuzami, would hold a news conference late Thursday afternoon and make a significant announcement.

The S.E.C. filed a lawsuit against Goldman in April, accusing the bank of securities fraud. The settlement came just days before Goldman is scheduled to report its second-quarter earnings.

Read more: http://dealbook.blogs.nytimes.com/2010/07/15/goldman-to-settle-with-s-e-c-for-550-million/?hp

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Reuters: FLASH: SEC says $550 million fine is the largest penalty ever assessed against a financial services firm

[sinkingfeeling]

1. I think that's way too low. How about $550 Billion?

[Earth_First]

2. Phew, for a moment there I thought there were going to be REAL consequences to all this...

:sarcasm:

[arcane1]

3. If I committed "securities fraud"...

Would my punishment be a fine that equals .001% of my monthly salary?

Or would I do jail time?

Actual human beings committed this fraud, but they pay a fine out of a company's bank account. The end result: no actual humans were harmed by this punishment.

[Po_d Mainiac]

9. Fab is still on the hook n/t

[Mr. Sparkle]

4. I think we need some jail time as well as a cash settlement.

the money alone, just does not cut it anymore, imho

[justabob]

5. is this the only tangle Goldman has with the SEC?

Or are there other cases on other items yet to be settled? Seems like there were several, but I may be remembering multiple issues within this particular knot.

[taught_me_patience]

6. Petty cash to Goldman

Lloyd probably saying to SEC "would you like me to 'make it rain'?"

[Spazito]

7. This settlement doesn't preclude, in any way, civil and criminal charges from...

going forward so, to me, this is very good news.

"It does not settle any other past, current or future SEC investigations against the firm. Meanwhile, the SEC’s litigation continues against Fabrice Tourre, a vice president at Goldman."

[arcane1]

12. Good to hear! n/t

[brentspeak]

8. Steal billions, pay millions...then steal more billions

[Po_d Mainiac]

10. Their access to the discount window should be denied

Watching them die a slow death would be a wonder to behold

[HCE SuiGeneris]

13. Unfortunately,

it would just precipitate the rats scurrying for new cover. But yes, I would love to see it.

[tranche]

11. It's not enough! They better cap the spill!