Goldman vs. SEC

Everyone “knows” Goldman Sachs is the root of all evil and that this SEC complaint is just more proof of that fact. While I’m not going to defend the morality or ethics of GS in any way, shape or form, I will say this is a pretty weak complaint on the surface. In fact, I think it might have ulterior motive.

The complaint is relatively short at 22 double-spaced pages. (Why do government documents always look like they were typed in 1952? Haven’t they heard of Microsoft Word?) You can read it for yourself here. Anyway, the crux of the issue is a “synthetic CDO” called ABACUS 2007-AC1.