S.E.C. Accuses Goldman of Fraud in Housing Deal (Published 2010)

The new Goldman Sachs global headquarters in Manhattan.Credit...Michael Appleton for The New York Times Goldman Sachs, the Wall Street powerhouse, was accused of securities fraud in a civil lawsuit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly intended to fail. The move was the first time that regulators had t

[Scatterbrain]

The move marks the first time that regulators have taken action against a Wall Street deal that helped investors capitalize on the collapse of the housing market. Goldman itself profited by betting against the very mortgage investments that it sold to its customers.