Poor lil’ Goldman Sachs didn’t get a memo from the S.E.C. before the case went public. Of course, when the police arrest a serial killer they give at least 48 hours to the suspect so that the evidence can all be boxed up neatly. Right? I don’t care if this is common practice for Wall Street criminals, it shouldn’t be. I hope the Security and Exchange Commission has changed their modus operandus, and no longer is complicit with covering up financial malfeasance.
Funny also how the Republicans are all for law and order, when it applies to non-white collar crimes, but when their donor class is threatened, the tune changes.
Goldman Sachs Group Inc. officials said they knew as far back as August 2008 that regulators were examining controversial mortgage securities created by the firm but were stunned by the bombshell civil fraud suit lodged against it Friday, with most having learned about it from news reports.
Firms typically get a chance to settle such suits, but not in this case, Goldman said. The Wall Street giant said it was alerted to the probe in the summer of 2008 and was warned that it might face a suit in July 2009. It says it then responded in detail to the Securities Exchange Commission’s inquiry in September, but heard nothing back from the government until Friday’s unveiling of the civil suit. The SEC usually notifies firms ahead of a lawsuit as a courtesy to give them a chance for a last-ditch settlement or to prepare for the public fallout.
Lawsuits by the SEC are subject to a vote by the agency’s five commissioners, and the tally on the Goldman case will be closely watched in Washington, as the current commission is split along party lines—with two Republicans and two Democrats, plus one independent who was appointed by President Obama.
The way the SEC launched the suit “certainly doesn’t follow the spirit” or practice of the agency, said Paul Atkins, who served as a Republican SEC commissioner.
[Click to continue reading Goldman Contends It Was Blindsided by Lawsuit – WSJ.com]
Well, Paul Atkins is part of the problem then, isn’t he? If SEC commissioners aren’t interested in regulating Wall Street, they should go ahead and resign to get a job in a Wall Street bank.