Goldman Case Splits SEC Along Party Lines

Decision came after months of secret negotiations failed
By Emily Rauhala,  Newser Staff
Posted Apr 20, 2010 9:23 AM CDT
Goldman Case Splits SEC Along Party Lines
Securities and Exchange Commission (SEC) Chair Mary Schapiro will face tough questions about the timing of the suit.   (AP Photo/Haraz N. Ghanbari)

The decision to go after Goldman split the SEC along party lines and came only after months of secret talks broke down. Though the commission generally aims for unanimity, they voted, 3-2, to proceed with the civil suit despite opposition from two Republican members. The tiebreaker was an Independent commissioner appointed by President Obama. Word of the rift threatens to politicize the case and widen the gulf between Dems and Republicans over the financial overhaul the White House is pushing, the Wall Street Journal notes.

Though Goldman insists the suit came as a surprise, the Washington Post claims the case came after months of secret talks with Goldman's lawyers. The SEC says they informed the bank they'd bring legal action last summer. The talks reached an impasse last month when Goldman refused to give ground or show contrition, the commission says. (Read more Securities and Exchange Commission stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.