Goldman Sachs Dodges Bullet With $550 Million Settlement Fine
The Wall Street Journalreports that the SEC was split in its Goldman Sachs decision. Goldman Sachs will pay a $550 million fine, but they won't have to admit to fraud, in a settlement with the SEC.
Thursday's settlement-in which Goldman agreed to pay a $550 million fine, but didn't have to admit it committed fraud—capped one of the most closely watched cases in the SEC's 76-year history. The agency had charged Goldman with intentionally duping clients by selling a mortgage-security product that secretly was designed by another Goldman client betting that the housing market would crash.
Suzanne McGee, author of the book, Chasing Goldman Sachs, told Betty Liu on Bloomberg Television that Goldman Sachs dodged a bullet. $550 million sounds like a large amount, but it isn't very big for Goldman Sachs, which makes $13 billion a year. Some analysts also think Goldman Sachs could make $550 million in a week.
Rebecca Jarvis discussed the Goldman Sachs settlement on CBS News. Take a look:
The Wall Street Journal 