Goldman Settles Sham Suit With SEC

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The SEC announced a few minutes ago that they settled their suit against Goldman Sachs (GS) for $550 million.  Goldman did not admit or deny the SEC’s allegations though it acknowledged that its marketing materials for the ABACUS synthetic CDO were incomplete for not disclosing Paulson’s role in the selection of the portfolio.

Goldman’s shares are soaring in the after-hours.

You can read my previous discussion of the SEC’s suit against Goldman here: “‘Top Gun FP Client Note: Blowout Earnings Overshadowed By SEC Suit Against Goldman”, Top Gun FP, April 22.

Disclosure: Top Gun is long shares of Goldman Sachs (GS).

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