April 22nd, 2010
11:37 AM ET

Case against Goldman is 'very weak'

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2010/images/04/20/art.wallstreet5.gi.jpg]

Fareed Zakaria | BIO
CNN Anchor, “Fareed Zakaria – GPS”

Federal regulators have filed a "very weak" case against the Wall Street investment bank Goldman Sachs, relying on hindsight to bolster the charges at a politically sensitive time, says analyst Fareed Zakaria.

The complaint, filed last week, accuses Goldman of defrauding investors in a complex financial instrument that was designed to allow one of the firm's clients to bet against securities tied to mortgages for U.S. homes.

SEC officials, who denied any political motivation in bringing the case, filed the charges as Congress was debating new regulations to rein in Wall Street excesses. President Obama is speaking on the subject in New York on Thursday.

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Filed under: Fareed Zakaria • Wall St.
soundoff (One Response)
  1. meenas17

    Goldman Sachs will find a way out .
    Letting Goldman at liberty, antagonises the business ethics.
    Law ,sometimes appears weak.

    April 22, 2010 at 11:47 am |