On Goldman
By now we've all heard the SEC is suing Goldman Sachs for fraud. I'm going to walk you through my thoughts on the complaint to explain what's there and why it's important.
First, the document filed by the SEC is a complaint. The purpose of this document is to define the issues for trial. Usually, the person filing the complaint has done a lot of investigation before filing the document -- so much so that they can more or less anticipate what the defendant will do.
The government is arguing Goldman committed fraud under the securities laws.
