Another High Profile Goldman Sachs Litigation SNAFU

Time to dust off the old juris doctor sheepskin, and wonder aloud about the legal advice that Goldman Sachs has gotten over the past few years. It’s a question worth asking as I review the firm’s recent history of unforced errors in the courtroom. The most recent case in point: the collapsing prosecution of former Goldman computer coder Sergey Aleynikov.

There’s a pattern here, and we can discern its outlines by starting with the “Fabulous Fab” Tourre-Abacus case. This was a simple fraud case involving Securities and Exchange Commission rule 10B-5 governing “manipulative and deceptive practices.” Any rookie lawyer could have looked at the facts concerning the sale of a monumentally complex security and recommended a quick settlement involving a modest fine. Instead, Goldman received what I can only surmise was some fairly awful advice, leading it to fight the allegations tooth and nail. I don’t know if it was a new legal team or simple exhaustion that led to an about-face, but Goldman settled in 2010 for a whopping $550 million fine and a lot of embarrassment.

The good news for Goldman is the Aleynikov case seems to be one of the final remnants of that misguided legal regime. The bad news is some more embarrassment from that era may well follow.

A quick review of the Aleynikov case:

 

Continues here: Why Goldman Sachs Keeps Losing in Court

 

 

Category: Legal, Really, really bad calls, Technology

Now Available: Non-Ethanol Fuel

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Category: Energy, Think Tank

10 Wednesday AM Reads

Halfway through the workweek, and its time for the best morning train reads in the land: • A Bot Made Millions on Wall Street by Reading Tweets. It Also Ate This Guy’s Lunch. (Slate) • Yes, Millennials, Please Invest in Your 401k (Barron’s) • Guy Trading at Home Caused the Flash Crash (BV) see also CFTC Charges U.K. Resident Navinder Singh…Read More

Category: Financial Press

IMF: Global Financial Stability Report

Category: Think Tank

Where Your 2014 Taxes Went

Source: National Priorities Project via Bill Moyers

Category: Politics, Taxes and Policy

Smaller Manhattan Apartments Keep Getting More Expensive

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Category: Markets, Real Estate

Masters in Business: Alan Krueger, CEA Chair, Princeton Professor

This week, our Masters in Business radio podcast features Alan Krueger, a labor economist and statistician. Krueger served as Chairman of the President’s Council of Economic Advisers, was a Cabinet Member from November 2011 to August 2013. He was Chief Economist of the U.S. Department of the Treasury in 2009-10, and as Chief Economist at the U.S. Department of Labor…Read More

Category: Podcast

10 Tuesday AM Reads

Markets were in rally mode yesterday, recovering almost all of the downside from Friday’s bloodletting. Futures look like they might make that happen today. Oh, and morning train reads: • The Bull Market in Stocks Is Alive and Well (Barron’s) • The Mystery of China’s Gold Stash May Soon Be Solved (Bloomberg) • This is what legalized pot…Read More

Category: Financial Press

2015 Pulitzer Prizes

2015 Winners and Finalists click for full list   Full list of prior winners found here.

Category: Financial Press

Category: Credit, Think Tank