| I'm selling stock in my company: Gummy Stuff Inc. I provide information on the company, like this. However, I don't tell you that I intend to short the stock -- betting that it'll tank. Am I doing something immoral / unethical? Perhaps. Am I doing something illegal? I doubt it. |
Saturday, May 1, 2010
Caveat emptor
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Yes, that is legal and moral.
ReplyDeleteGoldman committed Criminal Fraud (in my humble opinion) by Not disclosing necessary information on what & how their CDOs were structured And that they Misrepresented when they sold them And by betting on them causing losses to their buyers.
That is an entirely different situation akin to Criminal Insider trading.
How about a bet?
ReplyDeleteI bet $1 that they will NOT be charged with criminal (or other) fraud.
I believe you are correct (as usual, because you are an intelligent logical rational soul).
ReplyDelete;-D
It's not clear (to me, at least) what GS is required (by law) to reveal to investors.
ReplyDeleteIf they lied, that's one thing.
If they withheld information, that's another.
We'll see, eh?
P.S.
ReplyDeleteI *never* lie to my wife :^)
However, there are lots of thing I don't tell her ... like how badly I'm doing with her stock portfolio !!!
P.P.S.
ReplyDeleteSEC has charged that:
Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.