The Banking and Strategy Initiative

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Banks receive Wells notices for fraud action | Governance Insight – Banking Insight

Goldman Sachs , JP Morgan and Wells Fargo received notices from the SEC for new investigations into their role in bringing down the house in the 2008 crisis, as probably in prusuit of the promise made in the SOTU address in the election year and also the SAGs promise to follow on with Criminal action despite the $26 bln – $40 bln housing settlement

The new action targets the banks’ investments in Mortgage Backed securities and caps goldman Sachs at its now achieved 2012 levels of $117. Meanwhile SEC seems to have given the green light to MF Global management, siding with sloppiness than criminal intent in the misplacing of over $2.5 bln in client monies of which $1 bln is still missing

Goldman Sachs said on Tuesday that the Securities and Exchange Commission is considering filing charges against the bank for its role in a late 2006 subprime mortgage bond. The firm said the charges would relate to the disclosures Goldman made as underwriter of an offering of $1.3 billion worth of mortgage-backed securities. Goldman disclosed the investigation in its 10-K, which it filed late Tuesday.(Fortune/CNN)

Wells Fargo was filing it annual report and included the notice in the same Tuesday.

Among considered speculation which is yet awaiting confirmation, SEC , could under pressure, name specific individuals in its Wells notice this time and that Goldman Sachs, Wells Fargo and others would be looking to coming out clean before charges are filed and thence seek a settlement. LAt 2006 could also mean the infamous Magnetar tranches for one, or even Maidenlane that the Feds auctioned off last month



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