Breaking news: Goldman Sachs charged with fraud

In what should be the biggest news event for the next few weeks (unless you’re stuck somewhere because of a certain volcano), the US securities commission has (finally) charged Goldman Sachs with fraud over its role in marketing sub-prime CDOs. One of the naughtier bits was that it didn’t inform investors in these complex instruments that it was also shorting the CDOs, in other words, betting their value would fall. Stock prices may fall over this, but at some point you have to take a stand and say justice must be done.

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