Goldman Sachs fined $450,000

May 4, 2010 at 5:55 PM
| License Photo

NEW YORK, May 4 (UPI) -- U.S. regulators and stock exchange authorities fined Goldman Sachs $450,000 Tuesday for hundreds of violations involving short sales.

The Securities and Exchange Commission and New York Stock Exchange Regulation fined the bank for continuing to write naked short sale orders after regulators banned short sales two days after Lehman Brothers collapsed in September 2008, USA Today reported.

Short sales are deals in which an investor borrows an asset, then sells it, betting the price will go down. The investor agrees to buy the asset at a later date. If the price drops, the investor makes money.

A naked short sale is the same, except the investor skips formally borrowing the asset.

In Washington, Sen. Arlene Specter, D-Penn., has suggested strengthening the financial reform bill to force financial brokers to bet on the same side as their clients, The New York Times reported.

On Monday, the beleaguered firm said six lawsuits had been filed against it for "breach of fiduciary duty, corporate waste, abuse of control … and unjust enrichment," The Wall Street Journal reported.

Last month, the SEC charged Goldman with loading bonds with securities secretly designed to fail.

Related UPI Stories
Latest Headlines
Trending Stories
Madeleine Albright: 'Special place in hell' for women who don't support women
Watch every star-studded Super Bowl 50 commercial
Islamic State crucifies teen in Syria
Early human ancestor didn't have a nutcracker jaw
Elton John rides with James Corden for Carpool Karaoke