Watch as other governments pile on.
Goldman was right about the disaster caused by Congress and the regulators, and now they'll pay.
* * * * * J B K * * * * *
San Francisco
The document tackles head-on the SEC's central contention that Goldman misled investors by hiding the fact that Paulson & Co, a hedge fund, had a significant input in choosing poor-quality loans that went into a collaterised debt obligation, a mortgage-backed security, so that it could bet against it.
"There is no basis in the law, the record or common sense for such charges," it says.
In a separate document, sent to the SEC a few days later, Goldman refers to "open and robust" discussions with staff of the commission – a glimpse of the tough behind-the-scene talks that went on from July last year when the regulators formally informed the bank they wanted to press charges.
http://www.ft.com/cms/s/0/59e8b69e-4b3c-11df-a7ff-00144feab49a.html
