How the Goldman Sachs Fraud Case Could Accelerate Wall Street Reform

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When the SEC announced on Friday that it had filed a fraud action against Goldman Sachs Group Inc., the news hit the financial markets like a carefully targeted bomb. The media, regulators and lawmakers had been scrutinizing Goldman's record profits in the wake of the global financial crisis market collapse. But, with Goldman alumni working in this highest reaches of the federal government, the venerable Wall Street institution seemed untouchable. Money Morning has introduced a new article on their site commenting on the Goldman Sachs situation.

Money Morning, a global investing news service, has announced it has a new article commenting on the situation developing between Goldman Sachs Group Inc. and the SEC. According to Money Morning, this case could be the catalyst for sweeping changes in the way big Wall Street firms are regulated. When the SEC announced on Friday that it had filed a fraud action against Goldman Sachs Group Inc., the news hit the financial markets like a carefully targeted bomb.

The media, regulators and lawmakers had been scrutinizing Goldman’s record profits in the wake of the global financial crisis market collapse. But, with Goldman alumni working in this highest reaches of the federal government, the venerable Wall Street institution seemed untouchable.

Until now, that is.

When it comes to serious reform of the U.S. investment banking system, it now appears to Money Morning that the U.S. court system might succeed where lawmakers and regulators could not.

And this could be just the beginning.

According to the Money Morning article, depending on how far the SEC carries this suit, this case has the potential to shut down the cartel known as Wall Street. And it could finally jump-start the kind of sweeping overhaul that lawmakers and regulators have so far failed to launch.

As part of the fallout, other Wall Street titans may fall.

Money Morning Contributing Editor Martin Hutchinson - a former merchant banker - breaks down the case against Goldman. And he shows why this could be the catalyst for sweeping - and desperately needed - Wall Street reform.

Hutchinson's article shows:

Please feel free to repost this full story on your website as syndicated content. Please include a link to the original article on Money Morning.

Money Morning is an online financial news site dedicated to showing investors how following global trends can help them profit ahead of the crowd.

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