.
April 19th, 2010
12:31 PM ET

Goldman's liability could reach $700 million

[cnn-photo-caption image=http://i.cdn.turner.com/money/.element/img/1.0/sections/mag/fortune/mostadmired/2010/snapshots/goldman_sachs_ny_building.jc.jpg caption="Goldman Sachs could be forced to pay out $706.5 million over the next few years."]

Ben Rooney
CNN Money

Goldman Sachs could face a liability of more than $700 million as a result of charges it misled investors, according to a recent research report.

Brad Hintz, senior analyst at Bernstein Research, estimates that the charges could cost Goldman a total of $706.5 million, or $1.20 per share, over the next few years.

The Securities and Exchange Commission announced Friday it is suing Goldman for failure to disclose conflicts in a 2007 sale of a so-called collateralized debt obligation (CDO). Investors in the CDO, known as Abacus 2007-AC1, ultimately lost $1 billion.

In addition to the SEC case, many investors in Abacus are expected to file related claims against Goldman Sachs.

Keep Reading...


Filed under: Economy • Wall St.
soundoff (No Responses)

Comments are closed.