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San Francisco
Robert Khuzami, shortly after becoming the Securities and Exchange Commission's enforcement chief last year, told Congress the agency must be willing to fight big cases to show it poses a "credible threat."
Targeting Goldman Sachs Group Inc., the most profitable company in Wall Street history, in the SEC's first contested lawsuit against a major investment bank in more than a decade reflects the enforcement unit's new combative approach.
The stakes for the SEC are high. While winning high-profile cases may help the agency restore its image after being battered by the financial crisis and its failure to detect frauds including Bernard Madoff's Ponzi scheme, losing may tarnish the SEC's reputation. Goldman Sachs said it will "vigorously" fight the case, which hinges on whether information withheld by the firm should've been disclosed to investors.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aygfBecXRfgI&pos=2
