SEC Split 3-2 on Whether to Sue Goldman

Author:
Publish date:
Updated on

Looks like the SEC is as divided as Congress. The decision to file charges against Goldman was split right down party lines with the two Republican commissioners voting against the SEC's staff recommendation to file suit. Update: Goldman shares up nearly 2 percent on the news.

From Bloomberg :

SEC Chairman Mary Schapiro sided with Democrats Luis Aguilar and Elisse Walter to approve the case, said the people, who declined to be identified because the vote wasn’t public. Republican commissioners Kathleen Casey and Troy Paredesvoted against suing, the person said.

Related

If You Can Find Him, This ex-Goldman Sachs Analyst Owes the SEC $28 Million

After ratting on his pals for insider trading, former Goldman analyst David Pajcin decided to hightail it out of town. (Most likely to his native Croatia, although we doubt he’s holed up with his underwear seamstress aunt.) But if authorities can find him, and you know the crack investigators at the SEC will, Pajcin will owe the government $28 million, according to a judgement handed down by U.S. District Judge Kimba Wood late yesterday.

Goldman Faces Suit Over Timberwolf Deal

Now, Goldman Sachs may have to deal with another lawsuit from a bunch of blokes at an Australian hedge fund. Goldman has been tussling behind the scenes with lawyers from the firm, called the Basis Yield Alpha Fund, over a $100 million slice of the Goldman-sponsored Timberwolf CDO that the Aussies bought right before the shit hit the fan.