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FT.com / World - Angry Goldman lambasts fraud charges
Documents obtained by the Financial Times throw new light on the rocky relationship between Goldman Sachs and the US Securities and Exchange Commission during the 20-month probe that led to last week's fraud charges against the Wall Street bank.

The frayed mood between the bank and the regulators might explain the SEC's decision to file civil charges against Goldman on Friday without warning the bank, as well as the two sides' lack of settlement talks before last week's move.

In a 40-page document written in September last year in response to the SEC's initial accusations, Goldman and Sullivan & Cromwell, its lawyers, say the authorities' case is riddled with "fatal deficiencies" and criticises the regulators for laying blame with the benefit of "perfect hindsight".
"There is no basis in the law, the record or common sense for such charges," it says.

In a separate document, sent to the SEC a few days later, Goldman refers to "open and robust" discussions with staff of the commission - a glimpse of the tough behind-the-scene talks that went on from July last year when the regulators formally informed the bank they wanted to press charges.

"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Mon Apr 19th, 2010 at 09:07:45 AM EST
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