Tag Archive for ‘Collateralized Debt Obligation’
Reporter Jesse Eisinger credits the Financial Crisis Inquiry Commission’s just released report for being full of fascinating information and detail. Its biggest failing, he suggests, “is its timidity in engaging the most important question looming over the crash: What did Wall Street know and when did it know it?”
Reporter Jesse Eisinger suggests that Goldman Sachs’ announcement last week of a plan to increase transparency and disclosure does not resolve some big questions about the investment banks’ role in financial markets. “Could there be an argument that Goldman should break up into three smaller, more focused companies?” he asks. “It would be better for the financial system, and just might lead to the self-improvement that Goldman is searching for.”
The investment banking giant, seeking to repair damage to its reputation suffered in the aftermath of the global financial crisis, said its management and board had adopted and begun implementing 39 new policies and practices that represent a “fundamental re-commitment” by the firm to “reputational excellence” and increased transparency and disclosure.
Investment banking firm Goldman Sachs will pay a record $550 million penalty and reform a number of its business practices to settle SEC charges that it misled investors in a subprime mortgage product just as the U.S. housing market was starting to collapse. The settlement came on the same day that the U.S. Senate approved a sweeping financial reform bill that promises profound changes in the way Goldman and other investment banks do business.