Goldman Sachs Group Inc was charged with fraud on Friday by the US Securities and Exchange Commission (SEC) in the structuring and marketing of a debt product tied to subprime mortgages.
The SEC alleged that Goldman structured and marketed a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which cost investors more than $1 billion.
It alleged that Goldman did not tell investors "vital information" about the CDO, called ABACUS. This included that a major hedge fund, Paulson & Co, was involved in choosing which securities would be part of the portfolio, and had taken a short position against the CDO in a bet its value would fall.
According to the SEC complaint, Paulson & Co paid Goldman $15 million to structure the CDO, which closed on April 26, 2007. Little more than nine months later, 99 percent of the portfolio had been downgraded, the SEC said.
The SEC said Goldman Vice President Fabrice Tourre was principally responsible for creating ABACUS. It also charged him with fraud.
Goldman, Paulson and Tourre were not immediately available for comment.
Shares of Goldman sank $19.39, or 10.5 per cent, to $164.88 in morning trading on the New York Stock Exchange.
Friday, April 16, 2010
Tuesday, April 6, 2010
Nifty to trade in 5200-5400 range
Nifty is likely to trade in the range of 5200-5400 levels over the series with an intermediate resistance at 5400.
Open interest addition remained
skewed towards put options. The open interest concentration for April series continued to be in the 5200 strike put with the highest open interest of above 75 lakh shares, indicating crucial support in the near term.
Nifty 5400 strike call has an open interest of above 68 lakh shares, signifying that the level is the immediate resistance. Implied volatility (IV) still continues to be on the lower side of the band, indicating caution.
The basis movement remained one-sided during the week closing at a premium of 1 points. The move may remain mixed with selling pressure near 5400 levels. The index may find intermediate support around 5280,5220 levels. Options activity suggests a movement between 5200-5400 levels this week.
Open interest addition remained
skewed towards put options. The open interest concentration for April series continued to be in the 5200 strike put with the highest open interest of above 75 lakh shares, indicating crucial support in the near term.
Nifty 5400 strike call has an open interest of above 68 lakh shares, signifying that the level is the immediate resistance. Implied volatility (IV) still continues to be on the lower side of the band, indicating caution.
The basis movement remained one-sided during the week closing at a premium of 1 points. The move may remain mixed with selling pressure near 5400 levels. The index may find intermediate support around 5280,5220 levels. Options activity suggests a movement between 5200-5400 levels this week.
Sensex pares early gains to close flat
BSE Sensitive Index (Sensex) tested fresh 25-month highs on Tuesday but pared most of their early gains to close barely changed, even as world stocks edged up, on resistance after.
Re slips from 19-month high to 44.47
The rupee retreated from a 19-month high on speculation that RBI sold the currency to combat appreciation that may hurt exports.
US stocks wander on thin news
The Dow Jones industrial average edged close to the 11,000 mark but failed to cross it for a second day.
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