I think John Carney's view of Goldman's SEC problems is symptomatic of Wall Street in general. The issue is that they lied to investors, and, worse, they rigged the deal to blow up in their favor. What is hard to understand about this being actionable fraud, in any respect? Just because you often have bets placed going both ways, you don't get to omit from your clients that the person who designed the product they just bought is betting that it will go down in flames. It's like saying that a home buyer wouldn't be interested in the fact that his home was built by an arsonist who has an insurance policy on the home.

Tawdry deals like these are what bring down the economy, destroy trust, and freeze up credit. Kudos to the SEC for growing a pair.