The SEC and Goldman Sachs Group Inc.

This article, depicts the findings that the Securities Exchange Commission gathered relating to the the fraud case filed against Goldman Sachs Group Inc. on Friday April 16th. However the SEC still has a great amount of persuading to do in terms of the jury, to convey the actual purposes for some of the activities Goldman was involved in. The main issue at hand deals with Goldman's actions and investing during the credit crisis of 2009.

Goldman is said to have been selling products to investors that were correlated to the performance of specific mortgages without ever explaining to investors that a hedge fund betting on these mortgages helped the product. Outside lawyers feel that the Securities Exchange Commission in fact has the right amount of information regarding Goldman's activity in order to prosecute them for the firms actions. However it is quite important, regardless of the outcome, that the SEC delivers a meaningful message through this litigation process.

Goldman Sachs replied to the accusations in that the firm was quite "disappointed" with the SEC filing suit and bringing up these allegations upon their firm. Goldman feels that all investors should know that others are at all times betting on the direction of the product, by either betting for the success or failure of the product. In addition, lawyers who reviewed the complaint from the SEC agreed that their was nothing illegal about Goldman's actions.

Paulson & Co. was the hedge fund that helped in designing the product, however it was Goldman's responsibility to disclose Paulson's role. Bradley Simon, a white collar crime defense lawyer and partner of Simon and Partners LLP, stated that the SEC is going to have to prove that Goldman not only knew Paulson & Co. was short selling it, but also had a large role in gathering weak mortgages to bet against it.

The complaint filed by the SEC, alleges that Goldman intentionally did not disclose this information to investors pertaining to Paulson's involvement, however led them to believe that ACA Management LLC, an independent mortgage analysis firm, designed the product.

This case will all come down to the jurors, if it even makes it that far, however being such a complex and intricate case, there might be difficulty understanding all the financial complexity involving the product. However, Goldman has been frowned upon by many due to their firm receiving bailout money while still paying out large bonuses to top executives, so this will be an interesting case.

This issue, will allow us to examine both a top fortune 500 corporation as well as the sternness of a federal agency. The SEC in this particular case is taking an aggressive stand and will more than likely have to deliver exceptionally in order for the actions of Goldman Sachs to be punishable. Was Goldman deceitful in their ways of doing business and did they act unethically when trying to sell this particular product? Investor relations for such a firm, is quite vital in a situation like this. For instance, the IR department must preserve the corporations name in a time like this, as well as convey to top investors that Goldman is a trustworthy corporation and would never partake in such activities that would be detrimental to the firm and/or investors.

Safeguarding Social Networks

Throughout the article, "Safeguarding Social Networks from Stock Sleaze" found on IRWebReport.com, it discusses the utilization of integrating social media tools as well as a standard code of ethics for online usage. There is much debate in terms of the present day Internet utilization by public corporations and issues regarding trust, transparency, and reputation.

The Web is becoming more of an integral part of day to day activities in terms of investors, analysts, and corporations. Being that the Web is such a utilized entity, there needs to be an established standards of online proper behavior and etiquette and it must be adhered by by all users in order to maintain a common level of respect and trust between all users and corporations who participate.

There have been various accusations that companies have been violating securities laws pertaining to their online activities either through blogs or other social media networks. Companies such as Agoracom, is one of the many who has been brought up in the media for disclosure issues which in turn only damages their brand name and reputation, not leaving a positive image with the public.

Incidents as such should give other corporations within the industry a warning if they too are taking place in such activities. Hiding behind fake pseudonyms and posting on blogs or message boards in order to boast about one's company or say negative comments, is not a good means of doing business, especially for key executives.

Media tools such as Twitter and Facebook are being flooded with stock touts and promotions nowadays and are being used as a means to gain an unfair advent age. Therefore their is a need for the Code of Ethics or standards of NIRI to set a model for public companies to follow in order to display and acquire better business practices for their firm. As I have learned, it is quite vital that companies, public and private utilize certain standards in order to maintain a level of respect and professionalism. However, public corporations need to adhere to higher standards in terms of disclosure.