May 17

The U.S. Securities & Exchange lawsuit against Goldman Sachs provided fodder for more than half of the readers responding to fully support financial services reform.

Just 14 percent said the action made them less in favor of reform. A third, 34 percent of the 304 votes cast in the latest Business Pulse Survey, said one example shouldn’t be enough to set policy.

The SEC alleges that Goldman marketed securities tied to subprime mortgages but that it did not tell investors that a hedge fund with economic interests adverse to theirs was central in the portfolio selection process for the ABACUS CDO securities.

A shareholder class action was filed against Goldman Sachs Group and three of its executives this week.

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Tags: Reform, Reform Flames

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