Goldman Sachs Group Inc., which is facing a fraud suit from the U.S. Securities and Exchange Commission over its sale of a mortgage-linked security in 2007, tried to get rid of its portion of the deal, a lawyer for the firm said.
Greg Palm , Goldman Sachs Group Inc. general counsel, took a call in his 37th-floor office at One New York Plaza on Dec. 16, 2008. It was his old boss, Stephen Friedman , a former Goldman chairman who was then head of the audit committee of its board of directors. Goldman’s stock was down 65 percent from its 52-week high during an accelerating global financial breakdown.
For a moment last week as the Goldman Sachs drama unfolded, it looked as if the bank might defend itself against a sensational civil fraud charge by hanging out to dry one of its vice presidents, the fabulous Frenchman, Fabrice Tourre .
Goldman Sachs Group Inc. has signaled it will fight a U.S. lawsuit over subprime mortgage instruments the same way Bank of America Corp.’s Merrill Lynch unit and UBS AG have challenged similar claims -- by invoking the concept of caveat emptor: Latin for buyer beware.