Tags: Jim | Cramer | SEC | Goldman | Fraud | Case

Jim Cramer: SEC Will Win Goldman Fraud Case

Thursday, 22 Apr 2010 02:04 PM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Market guru Jim Cramer, founder of the Street.com, reckons Goldman Sachs will lose the case the federal government has filed against it for fraud.

“If there were a betting line on the trial of the Securities and Exchange Commission v. Goldman Sachs, the Securities and Exchange Commission (SEC) would be the overwhelming favorite,” writes Cramer in his column.

“That's because unless Goldman gets a jury of its peers who live at 800 Fifth Avenue, the people who will debate the evidence most likely will side with the government.”

Cramer believes the feds have captured the public’s imagination with this lawsuit.

“When you have the government vs. public enemy No. 1, who would you think gets the benefit of the doubt?” Cramer adds.

“Who on Wall Street do you think is guilty until proven innocent these days, least of all the firm that President Obama and the SEC seem to love to hate?”

But what of the merits of the case?

“They really don't matter. The SEC almost never loses a trial,” says Cramer. “Once the SEC has decided to bring a case, the only safe thing to do as a defendant is to cave.”

Nonetheless, Goldman is not caving in yet. It is playing defiant in public for now.

“What is clear is that Goldman was caught off guard by the fraud filing,” says Cramer.

Others share this view.

The New York Times is reporting that Goldman Sachs is saying that the losses on its accounts, being questioned by the SEC, are not evidence of bad faith, but are simply evidence of bad bets on an investment strategy.

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

RPT-Hedge Funds Raise Bullish Commodity Bets First Time in 5 Weeks

Sunday, 17 Mar 2013 17:13 PM

 . . .

Studies: Wind Potentially Could Power the World

Monday, 10 Sep 2012 15:51 PM

 . . .

Solar Storm Barreling toward Earth This Weekend

Friday, 13 Jul 2012 12:51 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved