News release: “The Securities and Exchange Commission today charged Goldman, Sachs & Co. and one of its vice presidents for defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter. The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.”

• Litigation Release No. 21489
• SEC Complaint
• April 16, 2010 – Goldman Sachs Makes Further Comments on SEC Complaint
• April 16, 2010 – Goldman Sachs Responds to SEC Complaint
• Related postings on financial system