SEC Calls Timing Of Goldman Investigation “Suspicious”, But It Doesn't Matter

The SEC Inspector General said the the timing of a fraud case against Goldman Sachs Group GS was “suspicious” and may have been used to cover its mistakes in failing to discover a Ponzi scheme by Allen Stanford. SEC Inspector General H. David Kotz said in testimony before Congress that “It would strain credulity to think it was coincidental. I can't give you a conclusion right now, but it was suspicious.” The report from the Inspector General's office indicated that the SEC suspected as early as 1997 that Stanford was running a Ponzi scheme but did nothing to stop it until late 2005. The agency filed civil charges against Sanford early in 2009 It really does not matter. The charges against Goldman seem to have been legitimate, and their timing, although ill-chosen, do not take away from that. Read the rest here.