Archive for Goldman Sachs
Goldman Sachs (NYSE: GS) Ordered To Pay $20.6 Million Related To Bayou Hedge Fund Fraud
Posted by: | CommentsThe Financial Industry Regulatory Authority has ordered Goldman Sachs (NYSE: GS) to pay $20.6 billion to victimized investors of a Ponzi scheme run by Bayou Hedge Funds. The three-person arbitration panel for the financial regulatory agency ruled that Goldman Sachs should have been aware of the Ponzi scheme being run at the hedge fund.
Goldman Sachs’ clearing unit is being held directly liable in the complaint. The $20.6 million is the amount that Bayou Hedge Funds deposited into its accounts at Goldman, which handled the funds trading between 1999 and 2004.
According to recent reports, the majority of victims invested anywhere from $300,000 to $500,000, with the total amount of fraud being estimated at about $250 million.
Bayou investors claimed in their suit that Goldman showed have known that there was some form of fraud or deception going on as they had marketing materials from the firm that claimed consistent returns, while the firms accounts showed losses.
Goldman argued that all it did was process transactions for Bayou Hedge Funds and was not aware of the fraud and by law is not required to investigate those holding accounts.
The ruling against Goldman Sachs will likely stand as arbitration cases are not overturned very often.
This article (Goldman Sachs (NYSE: GS) Ordered To Pay $20.6 Million Related To Bayou Hedge Fund Fraud) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Goldman Sachs (NYSE: GS) Shares Hit 52-Week Low On New SEC Probe
Posted by: | CommentsShares of Goldman Sachs (NYSE: GS) tumbled on Thursday, down 2.5 percent to a new 52-week low of $133.50 as reports surfaced that the Securities and Exchange Commission is now probing a second collateralized debt obligation (CDO) deal, called Hudson Mezzanine 2006-1.
The Hudson Mezzanine deal occurred in December of 2006, which Goldman underwrote and sold. According to reports, Goldman was the only investor that was short the investment by buying derivatives against the $2 billion in assets that backed the CDO.
Goldman Sachs was first probed about its CDO activity in April when SEC officials sought information on a deal called Abacus 2007-AC1. In that deal, billionaire hedge fund manager John Paulson helped structure the deal, while then shorting the investment.
Shares of Goldman Sachs are down roughly 28 percent since the SEC launched its initial probe in April. The investigation is still ongoing as a settlement has not been reached and Goldman denies anywrong doing.
This article (Goldman Sachs (NYSE: GS) Shares Hit 52-Week Low On New SEC Probe) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
With as much as $300 million in underwriting fees at stake, one of the largest paydays many years for investment bankers, Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM) are reportedly among the leading candidates to land the underwriting job for the initial public offering of General Motors.
Citing one person with knowledge of the matter, a Fox Business report said, “All the signs coming out of Washington are that JPMorgan and BofA will win the deal.”
Even so, the process of selecting the underwriters isn’t over, and it’s not a surety the two companies will end up getting the account.
Some sources say whoever does end up getting the job should be announced sometime next week.
What seems to be most important about this report isn’t who may be getting it, but who isn’t, which in this case is Goldman Sachs (NYSE:GS).
Goldman CEO and chairman Lloyd Blankfein was out traveling, which was given as the reason behind his not showing up to be interviewed by Treasury and GM officials. That’s significant because almost all major banks has either their chairman or CEO at the procedure, implying Blankfein may have been considered a liability or distraction to the process for Goldman.
A person familiar with the matter said the Treasury and GM are looking for a head underwriter which would focus on the smaller investors, and another one that would target the larger institutional clients; the reason two companies were evidently named.
It’s doubtful that Goldman or competitor Morgan Stanley (NYSE:MS) will simply accept this, and will undoubtedly strongly pursue landing the underwriting job.
This article (Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM) Leading Candidates for Underwriting General Motors’ IPO) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.