Last week the Securities and Exchange Commission filed a civil suit against investment bank Goldman Sachs, alleging that in 2007 the company intentionally misled clients with the securities it created and sold. The SEC says Goldman failed to disclose to customers that the hedge fund that created the investment also was betting against it. The company maintains that it provided investors with all information required by law. Nevertheless, the firm has reported strong earnings with a $3.46 billion profit in the first quarter of 2010. What effect will the case against Goldman have on Wall Street and the political effort for financial reform?
Andrew Hilton, Director of the Center for the Study of Financial Innovation in London
Allen Ferrell, Professor of Law and Economics, Harvard University
Doyle McManus, Washington columnist, Los Angeles Times
Dan Mitchell, Senior Fellow, Cato Institute