Former SEC lawyer reacts to Goldman CDO

Author: Nicholas Pettifer | Published: 16 Apr 2010

The US Securities and Exchange Commission (SEC) will be confident of success and Goldman Sachs will not settle in the Abacus 2007-AC1 matter, according to a former SEC lawyer.

“These are very serious allegations with lots of money involved,” said Steven Thel, professor of law at Fordham University and former lawyer in the General Counsel office at the SEC. “The SEC wouldn’t even think about this kind of action unless it thought it was going to win.”

When regulators make...