Fraud charge deals big blow to Goldman's image -

Fraud charge deals big blow to Goldman's image

NEW YORK (AP) -- Civil fraud charges against Goldman Sachs could hurt the Wall Street bank's ability to do business in an industry based largely on trust.

Sanford Bernstein analyst Brad Hintz says the charges filed Friday by the Securities and Exchange Commission could result in fines and restitution of more than $700 million. Yet, even if Goldman beats the charge, Hintz says, the hit to Goldman's reputation could carry a greater cost.

Goldman denies a Securities and Exchange Commission allegation that it sold risky mortgage investments without telling buyers that the securities were crafted in part by a hedge fund that was betting they would fail.

(Copyright 2010 by The Associated Press. All Rights Reserved.)


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