By Gary Howard
From the New York Times:
Goldman Sachs, which emerged relatively unscathed from the financial crisis, was accused of securities fraud in a civil suit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly devised to fail.
The move marks the first time that regulators have taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market. Goldman itself profited by betting against the very mortgage investments that it sold to its customers.
So, now that the federal government is finally getting around to dealing with some of the perpetrators in the financial crisis (as opposed to aiding and abetting them), I wonder when –if ever– they get around to dealing with those complicit individuals amongst their own ranks. They can start at the Federal Reserve and the Treasury Department, but it’s highly unlikely that will happen. May I suggest: Audit the Fed.