The “coincidental” timing of the SEC charges of fraud against Goldman Sachs as Obama launched his effort to further control the banking industry, left many wondering whether there wasn’t a coordinated effort between the White house and the SEC to sway public opinion on the legislation.
Well, wonder no more!
CNBC is reporting that the SEC’s own investigation and interviews have uncovered evidence that will undercut the core accusation of the SEC’s case.
The SEC accuses Goldman of breaching its fiduciary responsibility and committing fraud by not disclosing that a hedge fund was planning to short its offering of mortgage backed securities. Unfortunately for the SEC, it’s own interviews show that the company who planned to short the CDO specifically met and told the impacted companies, that it was planning to do so.
If Perry Mason were on a murder case where his defendant had been accused of murder but had someone else admitting to the murder, I’ll be he would at least follow up on the lead. Of course he would because Perry Mason had principles, fought for the truth and wasn’t persuaded by political gain.
