Goldman Sachs case triggers domino effect

The Securities and Exchange Commission (SEC), after filing civil fraud charges against Goldman Sachs, is investigating whether other Wall Street financial firms also have fraudulent practices that mislead investors.　　Britain and Germany may also take legal action against Goldman Sachs. Goldman denies accusing the SEC of filing a civil lawsuit against Goldman Sachs in the Federal Court of Southern New York on 16th, accusing it of selling financial derivatives for 2007 years on suspicion of material misrepresentation and omission, especially in the case of Paulson's hedge fund portfolio, which has a direct conflict of interest with investors,　　Causing investors to buy products that are being shorted by the hedge fund without their knowledge, has left investors with a loss of more than $1 billion trillion. Goldman Sachs denied the charges in Sunday.　　Goldman Sachs said that, like general business practices, Goldman did not disclose the identity of the buyer to the seller or disclose the identity of the seller to the buyer, and the lawsuit was not legal or factual. British Prime Minister Gordon Brown 18th blamed Goldman Sachs for "moral bankruptcy" and said he wanted the UK financial regulator to investigate Goldman Sachs. German government spokesman Vilmoux said on the same day that the German Financial Supervision Authority would submit a request to the Securities and Exchange Commission for access to the alleged information.　　　　After a careful assessment of the document, a decision will be taken on the relevant legal action. Goldman Sachs, or pay the 700 million dollar price the SEC said in Friday that some big financial firms designed new financial products to make big bets on US real estate prices drop sharply in the beginning of the turmoil in the US housing market a few years ago.　　The SEC's next step will be to investigate several financial companies, focusing on whether the financial companies have misrepresented and misled investors.　　At present, the U.S. financial market has a housing mortgage business companies have Deutsche Bank, UBS, Bank of America Merrill Lynch and so on. Study firm Bernstein Research estimates that the lawsuit could be closed in the form of civil fines and investor compensation, which would cost Goldman a maximum of 706.5 million dollars. (Shen Yu Green) The impact of the loss of Buffett's investment losses of 1 billion U.S. dollars after the news of the allegations of Goldman Sachs, the stock market in Friday closed down 12.8%, the value of 12 billion U.S. dollars evaporated.　　That makes many investors who buy Goldman shares a heavy loss, even as Warren Buffett is not spared. Mr. Buffett injected Goldman into the financial tsunami and received a 115-dollar warrant for the purchase price per share.　　He used to hold Goldman Sachs "sound good faith", weighed down by the stock price, his share loss is as high as $1.02 billion, with a market value of only 1.99 billion dollars.　　Mr Buffett is believed to be the focus of the market as he faces the unexpected Waterloo at its shareholders ' meeting early next month. Investor Rogers believes the Goldman incident will trigger a market realignment that could fall between 15% and 20%. Rogers said it was not the time for a massive sell-off and warned investors to start thinking about shorting bank stocks while taking the opportunity to buy gold for safe havens. (Shen Yu Green)