$550M sounds like a lot but that is 14.3 days worth of earnings for Goldman! The SEC will get $300M of that and the rest goes to pay defrauded investors who lost $1B+. Goldman shares opened at around $140/share this morning and is now at $152. With about 515M outstanding shares the company's worth increased $6.2B today. Sounds fair, right?
Quote:
WASHINGTON ? Goldman Sachs & Co. has agreed to pay $550 million to settle civil fraud charges that the Wall Street giant misled buyers of mortgage-related investments.
The settlement was announced Thursday by the Securities and Exchange Commission hours after Congress gave final approval to the stiffest restrictions on banks and Wall Street since the Great Depression.
The deal calls for Goldman to pay the SEC fines of $300 million. The rest of the money will go to compensate those who lost money on their investments.
|
http://news.yahoo.com/s/ap/20100715/...us_sec_goldman