Shares of Goldman Sachs Group Inc. dropped 10% Friday after the Securities and Exchange Commission announced fraud charges against the company.The SEC alleges Goldman (GS) and one of its executives defrauded investors "by misstating and omitting key facts about a financial product tied to subprime mortgages as the U.S. housing market was beginning to falter," the agency said in a statement.
Friday's sell-off in Goldman was the steepest decline in several months. The last time Goldman shares posted a daily loss of at least 10% was on April 20, 2009, according to FactSet Research.
The SEC's charges are related to a synthetic collateralized debt obligation, or CDO, that Goldman structured and marketed. The vehicles were among the complex derivatives that played a major role in the financial crisis.
The SEC's charges are related to a synthetic collateralized debt obligation, or CDO, that Goldman structured and marketed. The vehicles were among the complex derivatives that played a major role in the financial crisis.
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