Is there anything Goldman GC Gregory Palm isn't telling us?
Now that keeping secrets about an investor has landed Goldman Sachs in hot water with the Securities and Exchange Commission (SEC), a new disclosure issue has arisen. The question, in a nutshell, is: why didn't Goldman tell its investors that it was being investigated? In a conference call on Tuesday, Goldman general counsel Gregory Palm first defended the company against the SEC's fraud suit. He said Goldman was not legally required to disclose that an investor that helped choose a portfolio of subprime mortgage debt was taking a short position - meaning that the investor was betting the portfolio would lose money.
April 22, 2010 at 09:19 AM
3 minute read
Now that keeping secrets about an investor has landed Goldman Sachs in hot water with the Securities and Exchange Commission (SEC), a new disclosure issue has arisen. The question, in a nutshell, is: why didn't Goldman tell its investors that it was being investigated?
In a conference call on Tuesday, Goldman general counsel Gregory Palm first defended the company against the SEC's fraud suit. He said Goldman was not legally required to disclose that an investor that helped choose a portfolio of subprime mortgage debt was taking a short position – meaning that the investor was betting the portfolio would lose money.
Then Palm had to defend the company against some of its own investors, who wanted to know why they had not been told about the SEC's investigation. The probe became serious when the SEC served a so-called Wells notice on Goldman in mid-2009.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 2Wine, Dine and Grind (Through the Weekend): Summer Associates Thirst For Experience in 'Real Matters'
- 3'That's Disappointing': Only 11% of MDL Appointments Went to Attorneys of Color in 2023
- 4What We Know About the Kentucky Judge Killed in His Chambers
- 5'I'm Staying Everything': Texas Bankruptcy Judge Halts Talc Trials Against J&J
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250