The SEC alleges Goldman Sachs defrauded investors by marketing an investment backed by sub-prime loans without telling them that a big hedge fund was on the other side betting that it would fail — which it did. Law Professors Cornelius Hurley, a former counsel to the Fed Board of Governors, and Elizabeth Nowicki, a former SEC attorney, say the case is stunning.
Hurley: “Beyond the Goldman vice president charged in the complaint, how endemic to Goldman were these practices? Beyond Goldman, how endemic to this opaque industry, were these egregious practices?”
Nowicki: “Goldman had the obligation to be candid with the market. This is the antithesis of honorable conduct. No wonder most of Main Street is disgusted with most of Wall Street.”
Contact Cornelius Hurley, 617-353-5427, email@example.com
Contact Elizabeth Nowicki, 518-867-5355, firstname.lastname@example.org