The SEC may have shot itself in the foot when it made a failed German bank a key part of its fraud case against Goldman Sachs.
Yesterday, I reported that IKB Deutsche Industriebank was not the sucker at the table that the SEC depicts in its lawsuit against Goldman. Indeed, its executives were wily and wealthy financiers who employed financial engineering shenanigans to escape the watchful of eye of regulators, shareholders, and auditors.
Now a document exclusively obtained by the Daily Beast demonstrates (view them here) that just a few months before it invested in the derivatives at the centre of the SEC’s case, the German bank was touting its prowess as a sophisticated investor in those derivatives.
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