Goldman Paying SEC, IKB Deutsche, RBS $550 Million Fine (Judgment)

Today Goldman Sachs agreed to pay a $550 million fine to settle civil fraud charges by the SEC. $150 million will be wire transferred to German bank IKB Deutsche Industriebank AG, $100 million to RBS (Royal Bank of Scotland, formerly ABN AMRO Bank), $300 million to the SEC (Securities & Exchange Commission) and $15 million to payback fees (disgorgement). The judgment also said the Defendant (Goldman) must comply with a few "undertakings" which expire in 3 years (find the full SEC vs. Goldman Judgment PDF at

-Product Review and Approval / Firmwide Capital Committee,
-Internal legal and compliance / marketing materials, internal audits
-Role of outside counsel
-Education and training
-Certification of compliance

What this firm really needs is some good old fashioned disruption, IMHO. That will never happen though unless big money clients have the incentive to deal elsewhere. Ironically, the judgment was released on the same day the Financial Reform Bill passed the Senate. For previous posts including congressional testimonies and documents on Goldman's fraud charges go here:

Goldman Sachs Congressional Hearing Video 1 [Tourre, Birnbaum, Sparks, Swenson]

Goldman Sachs Congressional Hearing Video 2 [CFO, CRO]

Goldman Sachs Congressional Hearing Video 3 (Lloyd Blankfein CEO)

Inside Look At Financial God's Work At Goldman Sachs (PBS Videos)

Goldman Sachs Initial Defense From SEC Wells Notice (9/2009)

Abacus 2007 CDO Pitch Book Had Securities One Notch Above Junk, Four Months Before Two Bear Stearns Credit Funds Blew Up