Results tagged “Goldman Sachs” from Business Insider Blog
Royal bank of Scotland will take little comfort from its $100 million settlement award from the US Securities and Exchange Commission from Goldman Sachs admission it was economical with the truth in its selling of toxic bond deals wrapped up in Abacus 2007-AC1.
RBS is now "considering all options" which obviously includes the possibility of pursuing Goldman's for a considerably larger chunk of the $870 million it lost in the Abacus investment deal.
Those losses stemmed from the fraudulent omission Goldman's hedge fund client, Paulson & Co was not only selecting mortgages for the portfolio, but was also making side bets those mortgages would drop in value.
A very cosy arrangement for Goldman's, which also charged Paulson & Co $15 million for the privilege of selecting mortgage backed securities to go into Abacus both Goldmans and Paulson must have known were at the very least suspect.