The Goldman Sachs Group, Inc. settles with the Securities and Exchange Commission to pay the fine of $550 million to the U. S. market regulator. However, the SEC warned that this is not the end of it and that some civil law suits would be filed regarding the manipulated information offered by Goldman Sachs.
The SEC had filed a law suit against Goldman Sachs, accusing the Company of pulling a swindle and that the investors are being pushed into the market of a sub-prime mortgage product. Although, Goldman Sachs had first described the whole law suit "unfounded in law and fact", during the settlement, Goldman Sachs came clean, about the fact that the marketing data it provided had some "incomplete information".
It is not just for SEC, but the Royal Bank of Scotland (RBS) is also after Goldman Sachs for some damages to reconcile the civil fraud charges filed by RBS accusing Goldman Sachs with defrauding the market business.
Robert Khuzami, the SEC's Director of Enforcement said, "We would strongly encourage other institutions to adopt any kinds of best practices that they see across the street in order to prevent this kind of wrongdoing". He also added that prevention is better than cure.
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