Goldman Sachs

The US Senate and various customers are running inquiries into Goldman Sachs conduct, with regard to their design and sale of certain securitised asset products. In 2007, Goldman Sachs designed mortgage backed securities that they knew would fail and then they bet on their collapse by purchasing credit default swaps, which pay out upon a default. In Australia this type of conduct may contravene the insider trading provisions of the Corporations Act and those responsible would invariably be held liable for hefty penalties including Gaol.