The SEC settled with Goldman Sachs for $550M over Goldman's lack of disclosure in the Abacus 2007-AC1 CDO. While this is a record settlement for the SEC, I think the settlement is a real disservice to the public because it means that we will never have the opportunity to really learn just what was going on in the bowels of Wall Street in the run up to the financial crisis. The real value of the Abacus litigation was it was a chance to shine some sunlight on the inner workings of Wall Street. The complaint and hearings gave us a taste, but if this litigation went further, we would likely have learned much, much more. Instead, Goldman paid the SEC $550 in hush money and will succeed in keeping further details of its operations under wraps.
