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2010 Archives

Wall Street in subprime trouble again

Excerpt

The following appeared in the April 19, 2010, edition of CNN Money. Alan Bromberg, University Distinguished Professor of Law and an authority on securities law in SMU's Dedman School of Law, provided expertise for this story.

April 19, 2010

By Tami Luhby, senior writer

NEW YORK (CNNMoney.com) — Just when Wall Street thought it had put its subprime troubles behind it.

The Securities and Exchange Commission's fraud suit against Goldman Sachs is likely just the first of many subprime-related charges the agency will bring against Wall Street firms, experts said.

The SEC said Friday its investigation into the subprime meltdown is not yet over. . .

By aiming its opening shot Goldman Sachs, a storied Wall Street firm with close ties to the Washington D.C., the SEC is dispensing any notion that the investment banks have special protections.

"It's counter to the buzz that they have been indulging the big boys," said Alan Bromberg, securities law professor at Southern Methodist University, adding the agency is trying to rehabilitate its reputation.

Read the full story.

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