SEC files suit, saying Goldman Sachs profited from risky housing market

The Securities and Exchange Commission filed fraud charges against Goldman Sachs today, accusing the investment and securities company of knowingly profiting off the toxic housing market. The suit says Goldman Sachs and Vice President Fabrice Tourre made misleading statements and omissions in connection with a complex financial scheme in which the defendants presented risky subprime loans to their customers. According to the lawsuit, while customers lost over $1 billion, hedge fund giant Paulson & Company, which was involved in the scheme, made more than $1 billion in profits. Paulson & Company has not been charged. In a statement, Goldman Sachs said the charges are "completely unfounded in law and fact."