Goldman Sachs defrauded investors by failing to disclose a conflict of interest on mortgage investments it sold as the housing market went sour, according to the civil complaint filed by the Securities and Exchange Commission on Friday.
Goldman allegedly failed to disclose to investors that it was betting against subprime mortgage investments it pushed on clients. Essentially, according to the complaint, Goldman pushed a product designed to fail.
How did Goldman do that? We broke down the case step-by-step. Check it out: