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| Version 4 | Version 5 |
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| Goldman Sachs is accused of fraud | Goldman Sachs is accused of fraud |
| (11 minutes later) | |
| Goldman Sachs has been accused of fraud in a civil suit filed by US financial watchdog, the Securities and Exchange Commission (SEC). | Goldman Sachs has been accused of fraud in a civil suit filed by US financial watchdog, the Securities and Exchange Commission (SEC). |
| It alleges that the bank marketed a complex sub-prime mortgage package but did not reveal that a major hedge fund had bet against the securities. | It alleges that the bank marketed a complex sub-prime mortgage package but did not reveal that a major hedge fund had bet against the securities. |
| Goldman's shares fell more than 10% on the news of the accusations against the firm and one of its vice presidents. | Goldman's shares fell more than 10% on the news of the accusations against the firm and one of its vice presidents. |
| The bank escaped relatively unscathed from the financial crisis. | The bank escaped relatively unscathed from the financial crisis. |
| 'Regulation risk' | 'Regulation risk' |
| The SEC said that investors had lost about $1bn (£650m) in the rogue product - known as Abacus. | The SEC said that investors had lost about $1bn (£650m) in the rogue product - known as Abacus. |
| This is the first time regulators have acted against a Wall Street deal that allegedly helped investors take advantage of the US housing market collapse. | This is the first time regulators have acted against a Wall Street deal that allegedly helped investors take advantage of the US housing market collapse. |
| GOLDMAN SACHS GROUP INC.Last updated: 16 Apr 2010, 16:53 UK *Chart shows local time pricechange%159.33-24.94-13.53 More data on this share price | |
| Goldman did not tell investors "vital information" about the Abacus product, the watchdog said. | Goldman did not tell investors "vital information" about the Abacus product, the watchdog said. |
| That included not revealing that a major hedge fund, Paulson & Co, was involved in choosing which securities would be part of the portfolio, and had bet its value would fall. | That included not revealing that a major hedge fund, Paulson & Co, was involved in choosing which securities would be part of the portfolio, and had bet its value would fall. |
| Goldman vice president Fabrice Tourre, who the SEC says was principally behind the creation of Abacus, was also charged. | Goldman vice president Fabrice Tourre, who the SEC says was principally behind the creation of Abacus, was also charged. |
| Analyst Matt McCormick of Bahl & Gaynor said that the allegation could "be a fulcrum to push for even tighter regulation". | Analyst Matt McCormick of Bahl & Gaynor said that the allegation could "be a fulcrum to push for even tighter regulation". |
| "Goldman has a fight in front of it," he said. | "Goldman has a fight in front of it," he said. |