Goldman lawsuit ratchets up pressure on banks to get their house in order
The US Securities and Exchange Commission’s lawsuit against Goldman Sachs for allegedly misleading clients has provoked widespread vilification of the bank. But is it reasonable to expect ethical conduct by investment banks to extend beyond legal compliance?
The filing of a lawsuit on April 16 by the US Securities and Exchange Commission against Goldman Sachs for – it alleges – intentionally misleading investors has renewed public anger at the behaviour of ‘greedy’ investment bankers, whose supposedly excessive culture of risk-taking was considered a major catalyst of the subprime mortgage meltdown in 2007 and subsequent global financial crisis.
Following the announcement of the lawsuit, Goldman Sachs executives fought vehemently to defend the firm
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