LexisNexis® Legal Newsroom
High Stakes for the SEC, Goldman and Investors

The Commission's action against Goldman Sachs is the most significant case it has brought in years. SEC v. Goldman Sachs & Co. , Case No. 3229 (S.D.N.Y. Filed Apr. 16, 2010). The case pits the once revered securities markets regulator struggling for a come-back against the Wall Street giant...

O.K., So The SEC Sued Goldman Sachs - Now What?

The SEC's blockbuster announcement last Friday of its civil enforcement action against Goldman Sachs and one of its investment bankers rocked the securities markets and made headlines in the financial press around the world. Undoubtedly because of Goldman's prominence and perhaps also because...

The Commission Settles Four Related Market Crisis Actions

The Commission filed four settled market crisis actions centered on the sale of interests in a collateralized debt obligation. Each center on the CDO known as Delphinus CDO 2007-1 structured by Mizuho Securities USA, Inc. in mid-2007 and for which Delaware Asset Advisers served as the collateral manager...

$26M Settlement Reached in WaMu Mortgage-Backed Securities Class Action

SEATTLE - (Mealey's) Lead plaintiffs and defendants in a securities class action lawsuit against two subsidiaries of Washington Mutual Bank and certain of its officers and directors have agreed to a $26 million settlement on claims that the defendants misrepresented the investment quality of certain...

SEC Files Market Crisis Cases Against Bank of America, UBS

The Commission filed two new market crisis cases, one in conjunction with the Department of Justice. Once action is against Bank of America, N.A. centered on the sale of interests in an entity known as BOAMS 2008-A. SEC v. Bank of America, N.A., Civil Action No. 3:130-cv-0447 (W.D.N.C. Filed August 6...

SEC Brings Another Market Crisis CDO Case

The market crisis ended but enforcement actions stemming from it have not. Battered financial giant JPMorgan, fresh from its settlement with the CFTC relating to the London Whale episode, reportedly is about to settle for its role in the mortgage debacles which many believe were at the center of the...

SEC Announces $131.8 Million Settlement With Merrill Lynch

WASHINGTON, D.C. — (Mealey’s) The Securities and Exchange Commission announced on Dec. 12 that Merrill Lynch, Pierce, Fenner & Smith Inc. has agreed to pay $131.8 million to settle claims that it made “faulty disclosures about collateral selection for two collateralized debt obligations...

Consent Decrees, the District Court and the SEC: The Citigroup Decision

The Second Circuit handed down its long awaited opinion in SEC v. Citigroup Global Markets, Inc., Nos. 11-5227-cv, 11-5375-cv and 11-5242-cv (2 nd Cir. June 4, 2014). The decision arises out of the refusal of the District Court to enter a proposed consent decree agreed to by the parties to resolve a...

Second Circuit Vacates Judge Rakoff’s Rejection of SEC’s Citigroup Settlement

On June 4, 2014, in a long-awaited but not unexpected opinion ( here ), the Second Circuit ruled that Southern District of New York Judge Jed Rakoff had improperly rejected the $285 million settlement of the SEC’s enforcement action against Citigroup. Because the case involved the question of whether...

Fannie Mae to Pay $170M to Settle Securities Law Claims

NEW YORK — (Mealey’s) Fannie Mae will pay $170 million to settle claims that it misrepresented its exposure to subprime loans in violation of federal securities laws, according to a motion for preliminary approval of settlement filed Friday in New York federal court ( In re Fannie Mae 2008...