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All right joining us now with more in depth look at -- the resource of the -- -- and -- in our former SEC enforcement attorney.
The head of financial securities and partner.
At -- status in Goldberg this you know based -- just said.
Because my initial reaction was house and -- -- gonna understand what a collateralized debt obligation is.
Bitter receiving care about the product -- they they care more about the fact that there was fraudulent action going on or trying to prove that it.
Car for a look at all the communications that occurred in the assumptions that investors made in connection with the purchase of the instrument.
Looking both of verbal and written communications.
So regardless of whether you know he was kind of arrogant about it hey I sold this I got away with this.
Just most of the onus fall on the purchaser the investor the guy coming in saying -- can't one take -- shot.
And that's -- -- the basis of the federal securities laws -- one we're supposed to be and level playing field.
Where the information that we have access to generally has been disclosed and once it's been generally disclosed in -- -- An equitable manner if you make a decision you lose then the onus falls upon you having me to bad decision.
What's being argued here is that he didn't disclose fair and accurate information and misled investors -- simply I soldiers something that you realize what you were fine.
But back in July 2010 Goldman Sachs paid 550 million dollars.
Because they agreed that there was incomplete information in their marketing stuff so we've already paid this fine.
Well they pay 550 million dollars I'm not suggesting that -- for the wrong reasons -- that there was culpability but they -- and the action.
What -- actually believe that there was something wrong or not it's a commercial decision.
-- business has to move on and they knew that they probably wanted to and all the attention they're getting now for brace.
The issue is hitting just -- the rest of -- life and depending on.
What he settles he may not be able to practice and securities industry that's a -- may be fighting either for his own reputation.
Or for his future career.
I think at the end of the day regardless straight he's not condone the practice but whether or not they find him culpable but do you actually believe there's enough evidence against this -- and I kitty -- 34.
Well depends on your perspective that's usually made me Tami Taylor -- -- -- if he's found not guilty.
Legal he is able to practice.
And stay in the securities -- -- -- -- plenty of people who.
Had careers we're very -- jail time ever hearing involved in one way or another may not be on.
In the regulated -- percent but -- -- -- -- living speaking publicly talking about it so it's not -- clear what his primary motivations but it.
He's still young enough -- -- has occur ahead of him fighting for his name is important and the SEC has had about a record recently bring -- actions against individuals.
They had two people from Bear Stearns and somebody from Citigroup that the prosecution's did not stick.
So that actually to my next point.
Is this the loss bad for the SEC's reputation in general I mean they can't get -- -- -- can't get anybody at this point.
They can get people and I appreciate -- -- my experience with the SEC our motivation when I was -- I am sorry about this slam on you right you have people and you were there I that you did.
That is it's you don't know if you're not -- have enough evidence and it's in the benefit of why the laws were written.
And you look at the likelihood of winning -- -- they tried to settle with him but that's said.
There's a lot of pressure on the government to bring actions and as we discussed -- -- put a face to some of.
The issues that I was in 2008 if they if he is proving guilty if if this is -- several red mark for Goldman Sachs.
Not necessarily because I think they've settled what concerns me.
Is -- any regulated institution there's a supervisory chain and I find -- little dumb founding.
That's when he or old person young male would be left alone to be managing this from -- -- -- And that how could he do it all along that -- -- -- a good analytical merits than maybe he was potentially putting is product together.
We have to -- -- quickly how do you think this turns out.
You know what he's got a great defense team so I go 5050 on this sort of take a cop -- on the nine get married Gary thank you thank you.
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