With Goldman Sachs being charged by the US Securities and Exchange Commission for fraud in connection with the creation of complex financial products that were sold in the market. Shares of Goldman Sachs plunged more than 10 percent in just the first half-hour of trading after the suit was announced last Friday morning. They closed down 13 percent, at US$160.70, wiping away more than US$10 billion of the company’s market value. It is suspected that Goldman Sachs, despite knowing the flaw in the structured financial products that resulted investors to lose money, continued selling and marketing the product to the general public. Could Goldman Sachs' case be the tip of the iceberg, signalling the start of Wall Street's legal troubles stemming from the subprime meltdown? Other investment banks may be investigated to determine if they were also involved in creating similar products.
From tomorrow onwards and weeks to come, many companies will be releasing their quarterly financial results. This should add onto the already jittery stock market, especially the financial banks' sector.
S.E.C. Accuses Goldman of Fraud in Housing Deal [via]
Subscribe to:
Post Comments (Atom)
Popular Posts
-
According to a report in TodayOnline , Temasek-linked firms may post lower dividends this year. Even billionaire Warren Buffett's Berksh...
-
Singapore’s Land Transport Authority has just released an updated official MRT map including one additional station on the North East Line (... -
*********** Try to sleep now, close your eyes Soon the birds would stop singing Twinkling stars, are shining bright They'll be watch...
-
Robocopy, short for "Robust File Copy" is an advanced command-line utility included in Windows. It's designed to copy files an...
-
I would like to apologize that sigining of my guestbook is not possible at the moment due to an unexpected bug. There is already 74 entries ...
No comments:
Post a Comment
Do provide your constructive comment. I appreciate that.