Senator Ted Kaufman on Goldman SEC charge

Senator Ted Kaufman Comments On Goldman SEC Charge:

“‘To restore the public’s faith in our financial markets and the rule of law, we must identify, prosecute, and punish with stiff fines or prison those who broke the law. Their fraudulent conduct has severely damaged our economy, caused devastating and sustained harm to countless hard-working Americans, and contributed to the widespread view that Wall Street does not play by the same rules as Main Street.’”

Via zero hedge, whose coverage on the Goldmans issue is extensive and interesting.

And according to the Huffington Post this may be only the first of many such actions:

…in going after Goldman Sachs, the SEC is sending a message, Tavakoli [a Chicago-based derivatives expert and founder of Tavakoli Structured Finance] said. Firms like JPMorgan Chase are reserving more of their cash for an expected onslaught of lawsuits, according to regulatory filings. JPMorgan set aside an additional $2.3 billion for “increased litigation reserves, including those for mortgage-related matters,” according to its first quarter filings released this week.

For, um, balance, here is Goldman’s response, just out. Basically, “we lost money too and everyone knew the risks“. [Note the interesting comments to the post, too].

Watch this space.