Bengals Owens Orange Jersey

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On April 16, 2010, the Securities & Exchange Commission commenced a civil action against Goldman Sachs and one of its employees alleging that they misled investors that purchased CDOs (collateralized debt obligations) from the firm. The SEC claims that the offering memorandum and related documents that Goldman Sachs distributed to investors failed to disclose that Paulson & Co. Inc. ("Paulson") played a significant role in the portfolio selection process. The complaint also states that Goldman Sachs failed to disclose that Paulson was concurrently shorting this investment through credit default swaps that it bought from Goldman Sachs. This would suggest that Paulson had an interest in choosing mortgage backed securities that would fail. The end result: investors lost more than $1 billion.

As any lawyer that has dealt with the media likely knows, the press usually treats the alleged facts in a regulatory complaint as true. Thus, it is important to stress that the SEC has made these factual allegations, but they are in dispute. Yet, even assuming that they are true, the media debate regarding this case is focusing on the wrong question. Instead of asking, "Did Goldman Sachs break the law?", the media, and society for that matter, should be asking, "Did Goldman Sachs act ethically?"

While it is true that the answer to the first question Bengals Owens Orange Jersey may be more important to an investor in determining the value of Goldman Sachs stock in the short term, the latter question is more important for long term investors. Why? History shows that a pattern of corporate ethical breaches often lead over time to serious legal transgressions, and ultimately, company implosion. This is usually a slow progression, but the Bengals Owens Orange Jersey warning signs build over time. Then, one day, á la Bernie Madoff, you wake up and realize that instead of being a NASDAQ executive, you're the head of the world's biggest Ponzi scheme. Eventually, everything goes wrong and your life has degenerated to prison yard fights. If one compares the Madoff situation to the demise of companies such as Enron, WorldCom, and Bengals Owens Orange Jersey Tyco, there are reoccurring parallels. One of these is that management in these cases did not set out initially to defraud investors. It happened gradually and began with ethical breaches that compounded over time and led down the slippery slope towards outright fraud, imprisonment, and sometimes death.