Goldman Sachs vs. S.E.C.

Goldman Sachs chairman and chief executive officer Lloyd Blankfein testifies on Capitol Hill in Washington, Wednesday, Jan. 13, 2010, before the Financial Crisis Inquiry Commission. (AP)

The SEC took out the knives Friday, filing a civil suit against Goldman Sachs that alleges the bank knowingly defrauded investors of billions of dollars, and in fact made money on its investors’ losses.

Authorities say the bank gave its seal of approval to investments it knew were rotten. The worst of the toxic assets — the sort that helped bring down the financial system. 

It’s a big charge, and it could have sweeping consequences.

Goldman Sachs, which says the charges are “unfounded,” wasn’t the only investment bank wrapped up in these trades. All of Wall Street was doing it.  

This Hour, On Point: the federal government versus Goldman Sachs.


Matt Taibbi, contributing editor for Rolling Stone magazine. You can listen back to our hour with him last year, in which he debated a longtime consultant to Goldman Sachs. You can also read his big, and controversial, piece on Goldman.

Arthur Laby, professor of law at Rutgers School of Law. Before joining the Rutgers faculty, he served nearly ten years on the staff of the U.S. Securities and Exchange Commission.

Gregory Zuckerman, a senior writer and columnist for The Wall Street Journal who has closely followed these insider trading cases. His new book is “The Greatest Trade Ever: The Behind-the-Scenes Story of how John Paulson Defied Wall Street and Made Financial History.” You can listen to the On Point segment in which he tells the backstory of what went on with Goldman Sachs and other investment banks.

Please follow our community rules when engaging in comment discussion on this site.
Dec 1, 2015
Bethany Winder, a nurse who lives in Colorado Springs, Colo., plants a sign in support of Planned Parenthood just south of its clinic as police investigators gather evidence near the scene of Friday's shooting at the clinic Sunday, Nov. 29, 2015, in northwest Colorado Springs. (AP Photo/David Zalubowski)

Women’s health, American politics and gun violence after the Colorado Springs Planned Parenthood shooting.

Dec 1, 2015
In this 2010 file photo, Dr. Tom and Ann Earley work a Salvation Army kettle with their dog, Bocce, in an Atlanta, GA-area shopping center. (Flickr / Vicki DeLoach)

On #GivingTuesday, we’ll explore the trends in giving now from crowd sourcing to big charities and beyond.

Nov 30, 2015
Shoppers walks in front of a holiday display Sunday, Nov. 22, 2015, in San Francisco.(AP Photo/Marcio Jose Sanchez)

From Black Friday to Cyber Monday and beyond, we’ll add up the dollars and trends and bargains of the 2015 holiday shopping season.

Nov 30, 2015
United Nations climate chief Christiana Figueres, center left, Minister of the Environment of Peru and COP20 President Manuel Pulgar-Vidal, center right, and French Foreign Affairs Minister and COP 21 President Laurent Fabius, center, pose for photographers during a press visit to the COP21, Paris Climate Conference, site, in Le Bourget, north of Paris, France, Sunday, Nov. 8, 2015. (AP Photo/Thibault Camus)

World leaders converge in Paris for the big climate talks. We’ll look at what it will take to get a global climate agreement.

On Point Blog
On Point Blog
Fresh Ideas For Your Thanksgiving: Recipes
Wednesday, Nov 25, 2015

Did our Thanksgiving 2016 episode make you hungry? Good news — we’ve got recipes right here.

More »
Karl Rove Still Won’t Get Involved In The 2016 G.O.P. Primary
Tuesday, Nov 24, 2015

Karl Rove may say he’s not endorsing or getting involved in the 2016 G.O.P. presidential primary, but that won’t stop from offering advice on how to beat Republican front runner Donald Trump.

More »
Roger Cohen And Barry Posen On ISIS
Monday, Nov 23, 2015

A brief, but illustrative exchange between Barry Posen and Roger Cohen during our conversation on ISIS today.

More »