http://online.wsj.com/article/SB1000142 ... 70844.html
The Securities and Exchange Commission on Friday charged Goldman Sachs Group Inc. with defrauding investors, alleging that Goldman let a big hedge fund fill a financial product with risky subprime mortgages and then failed to disclose that to the product's buyers.
The SEC said in the civil complaint that Goldman and Fabrice Tourre, then vice president, created and sold opaque collateralized-debt obligations, or CDOs, that hinged on the performance of subprime-mortgage-backed securities.
Goldman Sachs called the accusations "completely unfounded in law and fact," and refuted key points of the complaint in an extensive rebuttal, claiming that the firm itself lost $90 million in the transactions.
Once they get done here they need to move onto the big fish Freddie and Frannie.