Friday, July 16, 2010

Is the Goldman Settlement the End? Hardly

As usual, Barry has the goods.

Goldman admitted material omissions/misstatements in their marketing materials; They disgorged profits and made up investor losses (Yves notes IKB and ACA were made whole). When you admit to misleading investors, you open the firm to future liability from all clients who bought money-losing synthetic derivative products. Hence, this is a significant litigation risk for GS — client civil suits to follow.

You've already seen the MSM/Spin Machine crap about 'victory' for Goldman.

It ain't.

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