By LOUISE STORY and GRETCHEN MORGENSON
c.2010 New York Times News Service
For Goldman Sachs, it was a relatively small transaction. But for the bank – and the rest of Wall Street – the stakes couldn’t be higher.
Accusations that Goldman defrauded customers who bought investments tied to risky subprime mortgages have only just begun to reverberate through the financial world.
The civil lawsuit filed against Goldman on Friday by the Securities and Exchange Commission seemed to confirm many Americans’ worst suspicions about Wall Street: that the game is rigged, the odds stacked in the banks’ favor. It is the first big case – but probably not the last, legal experts said – to delve into a Wall Street firm’s role in the mortgage fiasco.