Goldman Sachs Speaks, The Empire Strikes Back (GS)

You have already seen the news most likely about how Goldman Sachs Group Inc. (NYSE: GS) was charged with civil fraud by the SEC over its conflicted role in certain CDOs.  Goldman Sachs must have known something like this was coming, or at least had a press release and statement already canned in case this charge was ever filed.  Goldman Sachs is already responding via a Business Wire press release titled “Goldman Sachs Responds to SEC Complaint”…

Goldman Sachs Group, Inc. (NYSE: GS) responds to a complaint filed by the SEC today.

The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

The answer here is simple… Of course the firm responded.  It is not as though the firm has a history of just rolling over on charges or accusations.  This instance won’t be any different where it comes to Goldman Sachs defending itself, and this may be years in the making before resolution.

Goldman shares are down over 13% at $160.02 and the trading volume is almost 50 million shares.

JON C. OGG