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Goldman charged over CDO role

The US Securities and Exchange Commission filed a lawsuit against Goldman Sachs in April, alleging the firm misled clients. Some observers suggest the action may not be successful, but criticise Goldman’s behaviour. By Mark Pengelly and Duncan Wood

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Goldman Sachs has been sharply criticised for arranging a synthetic collateralised debt obligation (CDO) at the centre of a lawsuit filed by the US Securities and Exchange Commission (SEC) on April 16. The bank's executives endured a public flogging by US senators on April 27 and, as Risk went to press, reports claimed Goldman was considering settling the SEC case, in a bid to avoid further

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