<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.
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The politics & economics of the case against Goldman Sachs

The SEC is going after Goldman Sachs
The SEC is going after Goldman Sachs
Chris Hondros/Getty Images

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The fallout from the Securities & Exchange Commission enforcement case against Goldman Sachs continued over the weekend with more revelations about how Goldman allegedly bet against its own mortgage funds, turning huge profits on the record losses of the housing market. While more light was shed on the complicated “Abacus” scheme that Goldman created with a hedge fund, Goldman itself went on the defensive questioning the timing of the fraud case. The implication, which was also carefully expressed by some Republican members of Congress, was that there were more politics than regulation at work when the SEC announced it was going after Goldman, big boost to the effort to overhaul financial regulation. From fraud to synthetic collateralized debt obligations to mid-term elections—the intrigue over Goldman Sachs and the legacy of our financial industry collapse is sure to grow larger.


Larry Harris, professor of finance at the University of Southern California’s Marshall School of Business

Marcel Kahan, professor of law at New York University

Edward Luce, Washington D.C. Bureau Chief for the Financial Times