Goldman Sachs settles securities claim

Read this report about the Goldman Sachs settlement.


Goldman Sachs has agreed to pay $550 million to the Securities and Exchange Commission to settle charges of securities fraud linked to mortgage investments sold to investors, a person briefed on the matter told The New York Times's Edward Wyatt.

Under the terms of the deal, Goldman will pay $300 million in fines to the S.E.C., with the rest serving as restitution, this person said. Goldman will not admit wrongdoing.

The S.E.C.'s director of enforcement, Robert Khuzami, is scheduled to hold a press conference late Thursday afternoon.



My view
The regulator in USA is willing to take action on behalf of investors and make a settlement with a financial institution on the charges of fraud. The settlement is made without admission of liability. It would be impossible for the public to take legal action on their own.

I hope that this approach can also be taken by our regulator in Singapore. After all, we are following the same "free market" practice as in USA. Being "pro-business" does not mean that they are allowed to take advantage of the public.