Traceability Goldman fraud Door

Xu Weihao Goldman Sachs is accused of fraud that rocked Wall Street.　　Analysts generally believe that this is the United States Government to strengthen financial regulation of the overture, Goldman Sachs is the only one killed to the monkeys to see the rooster. On the morning of April 16, the Securities and Exchange Commission (SEC) filed a civil lawsuit against Fabrice Fabrice, Goldman Sachs Group and its vice-president, Torre, saying it misled investors by hiding key facts from investors as they marketed a subprime-related financial product. The SEC accuses Torre of being primarily responsible for the fraud.　　Goldman responded on the same day, denying all charges and saying it would defend the company's reputation with a positive plea. The SEC accuses Goldman of designing and selling a composite secured debt (synthetic CDO) based on subprime mortgage-backed debt (RMBS) in early 2007, when the US housing market and its associated securities have begun to show signs of running soft. The SEC said Goldman failed to disclose key information to investors, particularly Paulson & Co, a large hedge fund.　　Has played a major role in the selection of subprime mortgage bonds that make up the CDO, and, more seriously, Paulson's fund has opted to short the CDO.　　For the deal, Paulson fund paid about $15 million trillion in design and marketing fees to Goldman in 2007, but the deal brought it up to $1 billion trillion, all of which were billed by investors in the CDO. Simple and old fraud Khuzami Robert Khuzami, head of the SEC's law enforcement department, said: "This financial product is new and complex, but the fraud and conflict of interest are simple and old." Goldman mistakenly allowed a customer who had a profound impact on mortgage securities in its portfolio to short the mortgage market and provided false statements to other investors that the portfolio was chosen by an independent and objective third party institution. "In 2006, Mr Paulson began looking at empty subprime mortgage bonds, seeking ways to short such bonds. After trying several banks unsuccessfully, he found Goldman Sachs and hit. Before 2007, Goldman Sachs had been involved in a series of complex CDO deals.　　Goldman Sachs, in early 2007, was also fully aware that the housing market could collapse at any time and there would be no such CDO transactions. According to experience, Goldman Sachs knows that nobody in the market wants to be a buyer unless a third party independent agency is involved in the selection of mortgage-backed bonds, especially when housing is showing weakness. So Goldman found ACA.　　ACA, a company specializing in the selection of CDO portfolios, has a brand guarantee that investors are confident of buying the compound CDO. The indictment showed that Paulson was involved in the selection of the portfolio in conjunction with ACA. Because the purpose of Paulson is to doEmpty, so he naturally wants to pick the most problematic subprime mortgage bonds to join the portfolio. But instead of disclosing to ACA that Mr Paulson was actually shorting, Goldman misled ACA into thinking that Paulson was doing the CDO and was preparing to buy the most risky part of the CDO.　　Goldman's sales of the CDO also focused only on ACA's involvement in the portfolio selection, with no mention of Paulson's involvement.　　If that were the case, the Goldman Sachs and Paulson had designed a trap for investors, and they also found ACA for a good presentation. Paulson's myth, John Paulson, president of Paulson Fund, was the most successful hedge fund manager since the financial crisis. Mr Paulson has benefited only 6 billion dollars over the past few years.　　The entire fund proceeds at 4 billion dollars on a short CDO. In fact, Paulson's involvement in the design of CDO products is not a secret. The book "The Greatest Deal" (The greatest mini-advertisements Ever) details how Mr Paulson succeeded in shorting subprime mortgage bonds. In the book, Paulson has worked with several investment banks to design CDO products that shorted subprime mortgages.　　But the book did not disclose how the investment banks marketed the CDO products. In 2005, Paulson had a hunch that the US economy would slide, the real estate bubble, that house prices would never fall in general or that the federal government would lower interest rates to defend the market, and make it more convinced that the US housing market was facing a major crisis.　　Shorting subprime mortgages is the best option to reduce investment risk and profit from the crisis. In July 2006, Paulson raised 150 million of dollars to sell short subordinated debt.　　Unlike others, he does not rely on the rankings of rating agencies, but rather leads the team personally to analyze the specifics of the individual loans available to them and issue mortgage-backed securities from them.　　　　It is memorable that Mr Paulson bought 2 million shares of Goldman Sachs on August 12, 2009, about 164 dollars a share.　　Regulatory Storm Overture? The SEC said it was investigating investment banks or financial institutions that were still designing and selling financial products related to housing when the housing market showed signs of falling, and Goldman was only one of the companies involved in the investigation.　　Merrill Lynch is being sued by a Dutch bank for planning similar deals.　　One person who worked in the bank's CDO department told the first financial daily that such a CDO deal was very common at the height of the credit market, with every investment bank involved. Analysts say the incident has had a big impact on Goldman Sachs and on Wall Street. Goldman's reputation will be badly hit, though it may end up with a settlement with the SFC, paying hundreds of millions of of dollars.　　There have been accusations of a conflict of interest in Goldman since the financial crisis, but the accusations have not been well grounded and have never turned into investigations or prosecutions. A Goldman Sachs employeeIn an interview with this reporter, said the incident in the company's internal vibration is very large, "although we know that the SFC is investigating the company, but the news in the morning when the news, many traders on the trading floor put down their work, stand up to the news.　　"The company has sent letters to internal employees not to comment outside. Ironically, in its annual report of April 6, Goldman Sachs CEO, Lloyd Blankfein, wrote an unprecedented 8-page letter to shareholders.　　The letter mentions the word "customer" 56 times and repeatedly emphasizes that the client's interests are above everything else. The lifeblood of investment banks is full of confidence. The lawsuit is a direct blow to Goldman's client confidence.　　And people can't help but think that Goldman is cheating clients on mortgage-backed CDO products, what about other products? The accusations could also be a big boost to Mr Obama's financial regulatory reforms.　　On the same day, President Obama said he would veto all financial regulatory reform bills that do not include regulatory derivatives deals. The Goldman case may just be a prelude to a storm of US financial regulation.