Goldman Sachs (NYSE:GS) is no longer the sole recipient of the gaze of the SEC, as other giant bankers like Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Deutsche Bank AG and UBS AG have reportedly all been subpeonaed by the SEC, although JP Morgan has contended they aren't aware of any investigation targeting them.
The focus on the banks is whether or not they were representing the CDOs to be what they were, or they presented them as something else with less risk in them, while actually being extremely risky.
Goldman has said they've done nothing wrong, Warren Buffett has agreed with them, as he's one of the few that actually understand the way the CDO business works.
The problem seems to be the lack of understanding by these politicians who are looking to save their own political rearends after bailing out the banks against the will of the public. So they continue to pursue something that the general population, and many in the finance world itself, don't have a full understanding of, in order to give the appearance they are battling the big banks.
The more they get into it though, the more the realization is coming that they don't know what they're doing, and it's beginning to look like a witch hunt rather than legitimate misconduct by the banking institutions.
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