Goldman's to be fined

Posted on 9 September 2010 by Drew

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The FSA is expected to announce that it is fining Goldman Sachs £20 million for the way it sold mortgage-backed securities in the UK in the period leading up to the credit crunch.

The bank has settled charges relating to the mortgage-backed business with the American Securities and Exchange Commission by making a payment of some $550 millon in July.

The charges focus on the sale of one security known as Abacus which the SEC had claimed Goldman sold as a viable investment even though John Paulson, the legendary hedge fund manager, was shorting the instrument through Goldmans and was involved in choosing the underlying securities.

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