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Will SEC fraud charge of Goldman and its banker cause greater awareness of hard asset benefits?

*Financial Times, by Henny Sender & Francesco Guerrera, April 28, 2010

”Goldman Sachs is in talks over a potential settlement with an investor that claims that it lost money and went out of business after buying into a $1bn (€760,000) mortgage-backed security that was later privately criticised by a senior executive at the bank.

Timberwolf plummeted in value months after it was launched in March 2007, at a time when Goldman had already decided to cut its exposure to the housing market.

The talks are at a preliminary stage and there is no certainty they will lead to a settlement.

But the news will compound pressure on Goldman after a grilling of former and current executives by a Senate panel and scrutiny of its activities in the mortgage market in the run-up to the financial crisis. Earlier this month, the US Securities and Exchange Commission filed civil fraud charges against Goldman and one of its bankers, accusing them of misleading investors in a mortgage-backed collateralised debt obligation known as Abacus. Goldman and the banker, Fabrice Tourre, deny the charges.”


*This information is solely a highlight of the opinion of a third-party publication and is incomplete.  Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

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