The troubles continue for Goldman Sachs. After the civil action last week by the SEC, the policeman of the American Stock Exchange, the leaders of the institution are subject to a complaint by two shareholders, Robert and Morton Rosinek Spiegel, the Supreme Court of State of New York. They accuse the leadership of the bank to have breached its obligations by conducting a series of transactions involving CDOs (collateralized debt obligations) linked to subprime mortgages.
The bank's CEO, Lloyd Blankfein was named, along with all members of its board of directors. The French trader Fabrice Tourre is also part of those involved.
Both complaints put forward the "systematic failures" of the bank for three and a half years has not reviewed the Abacus-risk investments, in the heart of the case quick cash.The losses amount to one billion dollars.
These criticisms follow those of the SEC has accused Goldman Sachs of fraud accusing him of having misled investors during the marketing of complex financial product issuing CDOs. According to the SEC, Goldman Sachs has committed fraud rules governing the banking institutions do not publish everything she knew about these titles based on guarantees fragile.
Ed Canaday, a spokesman for the bank, declined to comment immediately, saying the bank had not yet seen the complaint.
ALSO READ:
Goldman Sachs is preparing his defense