SEC accuses Goldman Sachs for subprime fraud

By Jamie Cole
The Securities and Exchange Commission (SEC), the Securities and Exchange Commission, today accused the investment bank Goldman Sachs and one of its vice presidents of defrauding investors by falsely declaring and omitting key information about the financial products which were linked to sub prime mortgage when the housing problems were began to appear.

According to SEC, the bank did not disclose that one of its customers has helped create- and then bet against- the mortgage bonds that Goldman sold.

The indictment is part of SEC inquiry at the investment banks and others who are involved in dealing with complex financial products. The complex financial products such as sub prime mortgage are linked to the downfall of housing market in US.