SEC Robert Khuzami Talks

SEC Director of Enforcement Robert Khuzami Talks

* Titles

1. Title A year after Madoff, SEC touts change - Video - Business News
Source URL http://money.cnn.com/video/news/2010/03/12/n_sec_after_madoff_changes.cnnmoney/
Copyright (c) 2010 Cable News Network LP, LLLP
Length 4:06

A year after Madoff, SEC touts change:
Director of Enforcement Robert Khuzami brings you behind the scenes of structural changes at the regulatory agency. CNNMoney Mar 12, 2010

2. Title SEC director talks tough about Goldman - Video - Business News
Source URL http://money.cnn.com/video/news/2010/04/16/n_Goldman_SEC_lawsuit_Khuzami.cnnm...
Copyright (c) 2010 Cable News Network LP, LLLP
Length 4:47

SEC director talks tough about Goldman:
Director of Enforcement Robert Khuzami discusses the charges against Goldman Sachs during a panel at Tulane University's Corporate Law Institute. CNNMoney Apr 20, 2010

* Robert Khuzami: "The rule is that you need to play fair, need to provide the kind of proper and full disclosure that the securities laws require, or face the consequences."

* The Securities Exchange and Exchange Commission has filed a civil suit accusing the Wall Street giant Goldman Sachs of securities fraud for selling a mortgage investment that was established to fail. The investment consisted of pools of risky mortgages that had been packaged together. According to the SEC, the pools were picked by another Goldman client who was betting against their success. The client, John Paulson, made over $3.7 billion from the collapse of the housing market but is not named in the suit. The SECs Director of Enforcement, Robert Khuzami, said Goldman was in clear violation of disclosure rules.
Investors lost over $1 billion on the securities linked to the suit. The case marks the first time federal regulators have taken legal action against a Wall Street firm for profiting from the housing market crash.

* The SEC charged Goldman Sachs & Co. (GS&Co), and an employee, Fabrice Tourre, with fraud on April 16, for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation (CDO) GS&Co structured and marketed to investors, according to the SEC complaint. The SEC demanded a jury trial in this case.
The underlying portfolio of securities that backed the synthetic collateralized debt obligation (CDO), named ABACUS 2007­AC1, was connected to the performance of residential subprime mortgage backed securities (RMBS). The SEC complaint alleges it was not disclosed to investors that a large hedge fund, Paulson & Co. Inc. (Paulson), with economic interests directly adverse to investors in the ABACUS 2007-AC1 CDO, played a significant role in the portfolio selection process.
The SEC further alleges that Paulson & Co., Inc., effectively shorted the portfolio, by creating credit default swaps (CDS), with Goldman Sachs, and that Paulson, because of this short interest, had economic incentive to pick RBMS that it expected would drop in value for the portfolio.

* Find the full PDF of the complaint
http://www.sec.gov/litigation/complaints/2010/comp-pr2010-59.pdf

* The SEC alleged that Goldman structured and marketed ABACUS to hinge on the performance of subprime residential mortgage-backed securities. It alleged that Goldman did not tell investors vital information about ABACUS.
Read Goldman Sachs pitch book for ABACUS, the synthetic collateralized debt obligation at the heart of the SEC charges.
http://www.scribd.com/doc/30036962/Abacus-2007-Ac1-Flipbook-20070226.

* Permanent Subcommittee on Investigations: Goldman Sachs Exhibits. Released by Senate Permanent Subcommittee on Investigations on April 24, 2010.
http://documents.nytimes.com/permanent-subcommittee-on-investigations-goldman...

* Goldman-Sachs-Emails-Exhibits
http://levin.senate.gov/newsroom/supporting/2010/PSI.Exhibits.pdf
http://www.scribd.com/doc/30491114/Goldman-Sachs-Documents-Released-by-Senate...
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SEC, Robert Khuzami, Goldman Sachs, CDO,

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