Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Friday, February 03, 2012

Goldman Sachs Faces Mortgage Debt Class-Action Lawsuit Over Misleading Investors

Feb 3 (Reuters) - Goldman Sachs Group Inc was ordered by a federal judge to face a securities class-action lawsuit accusing it of misleading investors about a 2006 offering of securities backed by risky mortgage loans from a now-defunct lender.

U.S. District Judge Harold Baer in Manhattan certified a class-action lawsuit by investors in the GSAMP Trust 2006-S2, a $698 million offering of certificates based on a pool of second-lien home mortgages.

The underlying loans were made by New Century Financial Corp, a subprime mortgage specialist that went bankrupt in 2007.

Plaintiffs in the lawsuit said New Century ignored its own underwriting standards and used improper appraisals when making the loans, and Goldman failed to conduct adequate due diligence when it bought the loans and packaged them into securities.

Baer's decision is dated Feb. 2. (Reporting By Jonathan Stempel; Editing by Phil Berlowitz)

Original Article
Source: Huff 
Author: Reuters 
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