Wednesday, April 21, 2010

goldman sachfraud and financial markets

The storied Wall Street investment bank posted first quarter earnings of 3.46 billion dollars, up a whopping 91 percent against the same three months a year ago, blowing Wall Street expectations out of the water.

But as Britain's financial watchdog said it would follow US authorities in probing Goldman's sale of controversial mortgage-backed derivatives, the firm's share price tumbled two percent to under 160 dollars a share.

Wall Street is still reeling after the US Securities and Exchange Commission charged Goldman with fraud last Friday, sending the company's stock plunging 13 percent from over 180 dollars a share.

The US watchdog accused Goldman of allowing a prominent hedge fund to help put together a package of subprime mortgages that were sold to Goldman clients, but which the fund was at the same time betting against.

Britain's financial regulator on Tuesday also launched a formal investigation in relation to the US fraud charges, London's Financial Services Authority said.

Get Blog Update !!

© 2006 - 2010 Front Page News