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Goldman Sachs Update – Chuck Schumer fund-raiser John Paulson is key figure in Goldman Sachs fraud case, CEO Blankfein sued by shareholders over Abacus, Goldman may have used Abacus to unload other complex bonds it created, Buffett has ‘great confidence’ in Goldman Sachs, Goldman Sachs may be better off cutting its losses instead of fighting SEC, Case could bolster push for elevated dealer standard, Geithner says SEC did not give advance notice of Goldman suit, Paulson says his firm, not investors, will pay Goldman-linked legal fees, Don't kill the golden goose: Hedge funds wary of deserting Goldman, Goldman’s role in Lloyds refinancing deal questioned, Goldman Sachs’ e-mails spur Democrats to push Wall Street rules, Comment: Will Goldman Sachs prove greed is God?

Monday, April 26, 2010

Chuck Schumer fund-raiser John Paulson is key figure in Goldman Sachs fraud case From NYdailynews.com: One of New York Sen. Chuck Schumer's top recent fund-raisers is a key figure in the Goldman Sachs fraud case, a review of federal campaign records reveals. John Paulson, leader of the $33 billion hedge-fund firm Paulson & Co., helped Democrat Schumer collect nearly $100,000 in the first three months of this year. Schumer is running for a third term in November.

The Securities and Exchange Commission says Paulson's company helped assemble a bunch of bad mortgage securities for Goldman Sachs and bet they would tank, while Goldman found buyers who got soaked for $1 billion… Full article: Source

CEO Blankfein sued by shareholders over Abacus From Reuters / abcnews.go.com: Goldman Sachs Group Inc Chief Executive Lloyd Blankfein and other bank officials have been sued by shareholders in two lawsuits related to fraud allegations brought by the federal government.

In complaints filed in New York State Supreme Court in Manhattan, Robert Rosinek and Morton Spiegel accused Goldman executives and the bank's entire board of breaching fiduciary duties by letting the bank enter transactions involving risky collateralized debt obligations tied to subprime mortgages.

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