Goldman Sachs (GS) And "The Night Of The Long Knives"

This reminds of "The Night Of The Long Knives" also called Operation Hummingbird.

It is interesting how the market was carefully "prepared" for this event that occurs after an impressive up leg. We will see if it will be able to trigger more volatility. It will say a lot about this market.

Goldman Sachs Said to Have Been Warned of SEC Suit
GS fell 13 percent yesterday after U.S. regulators announced fraud accusations, didn’t disclose that it was warned nine months ago that investigators wanted to bring a case, people with direct knowledge of the talks said. In March, the New York-based firm said it was cooperating with regulators’ “requests for information.”

Net Gold Commercial Positions Surge To Multi-Month High Short Exposure
Gold traders who observed this spike in commercial shorts, especially when combined with the surprising strong gold price action over the past two weeks, are concerned that the news about Goldman, and its ramifications on Paulson's holdings of GLD, may have leaked over the past 10 days to allow banks to front-run today's hit in the price of Gold. The question of whether or not Paulson's worries will materialize into an actual partial or full-scale liqudation will be an open ended question for some time: today many of the key Paulson positions, primarily in financials and commodities have gotten hit hard, leading many to believe that the market may force his hand.
Goldman Serves One Master Better Than the Others: Jonathan Weil
Who knew the folks at the SEC still had it in them to accuse a major Wall Street bank of fraud?


Here is a summary of the story:
SEC charges Goldman Sachs with fraud

Best from Twitter:
About time: U.S. Accuses Goldman Sachs of Fraud in Mortgage Deals http://nyti.ms/d6OByE
Mixx: SEC charges Goldman Sachs with fraud http://su.pr/1gnRRq http://t.mixx.com/SQ6N
DETAILS U.S. charges Goldman Sachs with FRAUD, firm sold investments designed to fail http://huff.to/db2rwS
Goldman Sachs charged with fraud by SEC http://link.reuters.com/kah28j
Goldman Sachs' fraud explained: how they pulled it off http://huff.to/cZj2aa
Know Thyself: Your Response to the Goldman Selloff Speaks to Your Recovery Convictions
A volcanic cloud over Wall Street
Investor Who Made Billions Is Not Target of Suit
Do you really think SEC went ahead without green signal from the powers
GOD’S WORK IS “ROTTEN TO THE CORE”