In an effort to uphold the rule that the Masters of the Universe can pretty much get away with anything simply because they’re the Masters of the Universe (see, also: Jobs, backdating), a federal judge has ruled that Goldman cannot be included in a lawsuit by Fannie Mae shareholders. The suit alleged that Goldman had allowed the company to “relocate” $107 million in earnings without informing shareholders.
Judge Richard J. Leon said that there was no evidence that Goldman had prepared any of the financial statements that mislead Fannie Mae, or knew about them in advance. The suit complained that that Goldman Sachs had furthered Fannie’s scam through two Real Estate Mortgage Investment Conduit transactions “for the sole economic and improper purpose of shifting $107 million of Fannie Mae's earnings into future periods.”
Interestingly enough, it was the precedent set by the Goldman rule that allowed Kobe Bryant to get off.
Judge Frees Goldman from Fannie Suit [CFO.com]
Posted by Legal Beagle, May 09, 2007 5:51PM
Minor correction. Kobe "got off" in that white girl's coochie. The charges against him were "dismissed."