A couple of weeks ago we noted that a Fortune Magazine article wondered if Goldman Sachs’ recent positive quarterly results were artificially inflated. This morning’s New York Post suggests that SEC may be taking a look at how Goldman came to report such positive results when their peers were getting crushed….
The Securities & Exchange Commission is
looking into whether Goldman Sachs cheated its way to enormous profits – even as
the rest of the financial industry was suffering through a massive downturn.One person who discussed the matter with
the SEC says the investigator seemed curious as to whether the investment
banking side of Goldman’s business could have tipped off the trading side of
that brokerage firm to the extent of the problems that would soon be encountered
by Bear and others.And there also seemed to be a philosophical discussion as to whether that would
constitute insider trading even if there was such a leak. The SEC doesn’t
comment on any investigation it might be undertaking. My sense is that the SEC’s
interest is preliminary.
SEC Eyes Goldman Sach’s Good Fortune – New York Post
Tags: Credit Crunch, Goldman Sachs
