Financial expert Janet Tavakoli weighed in on the Securities Exchange Commission's fraud charges against Goldman Sachs Friday.
Tavakoli told Katie Couric that she wasn't surprised by the SEC's move, but was shocked that that it had taken regulators so long to file a complaint.
She believes that the process could have a far-reaching impact for investment banks--if it's "done right."
Tavakoli: This may be the beginning of a lot of questions asked about... a lot of investment banks. And if this is done right, there will be massive implications. If it isn't done right, the way it hasn't been done right in the many years past... we're not going to fix things.
Tavakoli predicted that "a lot more will be coming" for investment banks who participated in "widespread malfeasance."
The SEC says that Goldman Sachs sold securities to investors that were handpicked -- and destined -- to fail, without disclosing that to investors. The immediate losers were pension funds, foreign firms and private investors, who lost more than $1 billion on the single security at hand.