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The leader can first individual insurance The rhythm and blues vintage in appearanceIn total the claw has ten points of saleThe POC therefore call for more tax fairnessBut this binding was adjourned in the Committee to the Assembly4 million the various devices implementedThis text contains three major innovationsBut each year the road continues to kill about 600 employeesThe Defence Board on three broad assumptionsBoth also of very good customers of the longhaul Airbus and BoeingSacred elephant Wall Street has been affected. By attacking fraud Goldman Sachs, the Securities and Exchange Commission (SEC) has created an earthquake which weakens a bank yet so powerful that it virtually untouchable imaginait. His reputation as the relationship of trust with its customers are today compromised. If some welcomed this weekend to see the financial giant topple finally - Goldman Sachs is no shortage of enemies, even more since the financial crisis of 2008-, this action also raised great concern among the players in the complex market of derivatives, who wonder if a similar fate awaited them. The names of Deutsche Bank and Citigroup are particularly advanced. But it is the whole of the financial sector which marked the kick on the stock markets Friday, the shock wave of this civil action promising to be enormous.
Specifically, American fellow constable accuses Goldman Sachs of deceived its customers for the benefit of the investment fund Paulson & Co., who made his recent fortune by playing on the decline in real estate values. A young old French now thirty-one years, Fabrice Tourre, who worked at the time on commodity derivatives for Goldman in New York, is also covered by the complaint. In early 2007, it was mounted at the request of Paulson a CDO synthetic ("collateralized debt obligation"), i.e. a representative title of mortgages, the famous "sub-prime". Called Abacus 2007 - AC1, the CDO was sold to several investors, including German IKB and the Dutch ABN AMRO, unless they know that Paulson had actively participated in the composition of the portfolio or he was going to take a reverse position... On the contrary, the SEC accused Fabrice Tourre to believe that Paulson would invest $ 200 million in the CDO. In just a few months, investors have lost 1 billion dollars in the case, while Paulson won his side 1 billion. He settled at Goldman Sachs $ 15 million for structured Abacus and assured its marketing.
The Germany could attack
After losing 10 billion market capitalization Friday following the announcement, the Bank began to prepare his defence. It asserts that the alleged facts "are completely unfounded and that it will vigorously defend its reputation." Lloyd Blankfein, CEO, will perhaps be explained shortly, because it could be heard by a Committee in the Senate during the week of April 27. In a more detailed letter in the second part of day Friday, the Bank said that it "did not set up a portfolio designed to lose money" and that she herself has lost $ 90 million in the case. It ensures that IKB and ABN AMRO have been amply informed and stresses that it is "sophisticated investors". She admits that Paulson participated in discussions on the selection of the portfolio of real estate contracts but, she adds, "it is typical for this type of transactions." The action of the SEC is not only important because it affects players in view, but also because it targets the product which has accentuated the derailment of the financial system. Wall Street is packaged for synthetic CDOS from 2004. When the "sub-prime" market growth slowed and some transmitters began to fail, banks found this new material, mortgage insurance (and also credits themselves), to packager. According to the "New York Times", Goldman created 25 contracts Abacus between 2004 and 2008. Investors who felt the wind were particularly keen because a CDO implies that an investor bet on rising and another on the decline of the product. Those who, like Paulson, had seen the limits of the "subprime" and played down have made fortunes. But they have also contributed to the excitement of the system, up to the bankruptcy of an insurer AIG, the incursion of the TOS field cost $ 187 billion American taxpayers.
The legal implications could be many. This weekend, the German Government indicated that it planned to sue Goldman Sachs. "German financial Constable BaFin will make a motion with the SEC for information" and "after a careful study of the documents, we will examine the legal remedies", said a spokesman. The German bank IKB had saved from bankruptcy at a price of several billion euros of public money in 2008. British Prime Minister Gordon Brown has also asked the regulator of the country (FSA) to launch an investigation, saying "shocked" by the "moral bankruptcy" of the financial system.
