LyrArc Article Gist
The SEC filed the Goldman civil suit the same day that its Inspector General released a report on the gross failure of the SEC for a decade to catch the Ponzi scheme of Allen Stanford. As a result of the lawsuit against Goldman that report never got the front page coverage it deserved leaving most people unaware of some crucial facts about SEC behaviour. The IG report shows how the enforcement chief of the SEC Fort Worth office quashed his staff's efforts to investigate- and following this how he goes into private practice landing Stanford as a client. The Goldman Abacus case has a whole cast of characters, the SEC, the Ratings agencies, and even the supposed victims German bank IKB. IKB sold commercial paper IOU's to investors in mid 2007 that were worthless to investors by the end of that year. IKB's CEO Stefan Ornstein went on trial in Germany for lying about IKB's financial condition before its collapse.