This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SEC Probes Other Deals: Report

Updated from Sunday, April 18

NEW YORK ( TheStreet) -- The Securities and Exchange Commission's civil fraud charges against Goldman Sachs (GS - Get Report) may be just the tip of the iceberg, according to a published media report.

The SEC is now is investigating whether mortgage deals set up by other big Wall Street firms may have misled investors, The Wall Street Journal reported Sunday on its Web site.

In the case of Goldman, the SEC alleges that the firm set up a deal with hedge fund Paulson & Co. that allegedly allowed the hedge fund to take short positions against mortgage securities. Goldman then allegedly marketed a collateralized debt obligation, or CDO, that included those securities to its clients without telling them Paulson & Co. had helped to choose the securities and was taking a short position against the CDO.

But Goldman's wasn't the only big financial firm that structured deals to allow key clients to make bets against housing, the Journal report noted.

Among other firms that created other mortgage deals that went sour as the housing bubble began to burst were Deutsche Bank (DB - Get Report), the report said, UBS (UBS) and Merrill Lynch , now owned by Bank of America (BAC - Get Report). It isn't known what deals the SEC is investigating.

Further cases could hinge on whether the SEC sees what it considers misrepresentation, and not just questions such as whether a deal favored one client over another, the Journal says.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $16.44 2.05%
DB $32.09 -0.62%
GS $199.24 0.87%
UBS $20.36 1.20%
AAPL $128.70 -0.19%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs