A recent article posted on the BBC news website announced that US bank Goldman Sachs, has agreed to pay a total of $550 million to settle the charges of civil fraud brought against it for misleading investors. This is the largest fine ever imposed on a bank by the US Securities and Exchange Commission, however, it has yet to be approved by a federal judge.
The article states that Goldman Sachs never admitted to any “legal wrongdoing”, but did confirm that their marketing to investors included “incomplete information.” Even though Goldman Sachs has been asked to pay a record fine, their “shares rose 4.5%,” which is why “many analysts felt the firm got off lightly.” Robert Peston, BBC’s business editor, in his blog, talks about the fine and says that it won’t be a “fundamental challenge to the way [Goldman Sachs] does business.” The fraudulent activities of this bank have led to large monetary losses in banks around the world, and yet, there are some that believe Goldman won’t be much affected by the penalty imposed upon them. It is important to read this article in order to know what is currently happening on Wall Street, how it is being dealt with, and how that’s affecting the rest of the world.
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