Patt Morrison

<em>Patt Morrison</em> is known for its innovative discussions of local politics and culture, as well as its presentation of the effects of national and world news on Southern California. Hosted by

Goldman Sachs gets sacked by an SEC fraud suit

by Patt Morrison

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The SEC has filed suit against Goldman Sachs Alex Wong/Getty Images

The Securities and Exchange Commission (SEC) filed charges today against financial giant Goldman Sachs claiming the firm defrauded investors by a selling them mortgage-backed securities (subprime mortgages) the firm suspected were likely to fail. Goldman, and select clients, then bet against those investments and profited when the housing bubble burst. Investors lost more than 1 billion. Goldman calls the allegations “unfounded in law and fact” and plans to vigorously defend itself against the suit. The company’s stock fell 16% today, the lowest the stock has sunk in over a year.


Dean Baker, economist and co-director of the Center for Economic Policy and Research

Mary Bottari, director of the Real Economy project for the Center for Media and Democracy

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