Move Over Abacus, SEC Now Looking At Goldman's $2 Billion "Hudson" CDO


The SEC may not be done with its investigations into Goldman Sachs.

According to FT, there’s another CDO deal it’s looking at as part of a wider Wall Street inquiry. This time it’s called Hudson.

The details sound familiar. There was apparently a representation that Goldman would go long the CDO. It apparently did it. Naturally, there’s an email floating around. It says that a potential investor was “too smart to buy this kind of junk.”

Details are scarce, the investigation is preliminary, and there’s no indication yet this will lead to any new civil charges.

As more and more of these emails and possible conflicts of interest come out and various banks, we’re thinking the odds of a .com-like global settlement keep going up.

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