The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Abacus and after

Ever since Goldman Sachs agreed to pay a $550 million fine to settle the SEC investigation into its Abacus 2007-AC1 CDO in April last year the market has been braced for further actions against synthetic CDOs. Shortly after the Abacus settlement SEC enforcement chief Robert Khuzami stated that the agency would launch investigations into conflicts of interest in similar deals, a series of which are now under investigation. This is the focus of much speculation in the market given the flood of litigation that might follow further settlements. Plaintiffs who have so far been unwilling or unable to bring cases against the banks will likely be encouraged by the prospect of government underpinning for their arguments and forensic examination of bank behaviour. The email evidence that has so far come to light makes it clear that, for most in this market, the collapse of the sub-prime mortgage market was very much expected well before mid-2007.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree