SEC votes along party lines to sue Goldman Sachs...SAY WHAT!

Wall Street Journal
By KARA SCANNELL

The Securities and Exchange Commission decided to sue Goldman Sachs Group Inc. over the objections of two Republican commissioners, suggesting an unusual split at the agency that could politicize one of its most prominent cases in years.

People familiar with the matter said the five-member commission held a lengthy meeting Wednesday to debate the civil-fraud charges against Goldman, and ultimately voted 3-2 in favor of pushing forward. The charges were filed Friday.

Normally the agency prefers to have unanimous support when bringing enforcement actions against the firms it regulates. Word of the SEC split could exacerbate partisan tensions in Washington over the Obama administration's proposed financial-regulatory overhaul.

People familiar with the vote said Ms. Schapiro—a registered independent—joined two Democrats on the commission, Elisse Walter and Luis Aguilar, in supporting the fraud case against Goldman. The two Republican commissioners, Kathleen Casey and Troy Paredes, were opposed, they said. The commissioners didn't respond to repeated requests for comment.


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Grandpa did not realize that fraud was a blue state or red state matter. What is going on? Not unlike financial reform in which the blue coats have drafted a bill and the red coats (all 41) have opposed the bill. Let's settle the bologna for once and all. Put financial reform in place for the states desiring it and let the remaining states continue on an "as is basis" and when the proverbial _____ hits the fan, states will secede from the union and we can start this entire process over yet again.

The SEC defines fraud based on party lines. How ironic that Pew Research just released their study noting that over 75% of Americans do not trust government. WOW, WHAT A SHOCK!