An investigation has determined that the timing of the SEC’s announcement of their charges against Goldman was mostly just coincidental, and they didn’t coordinate it to coinicide with wither the Allen R Stanford report or FinReg.(Read background on the charges of suspicious timing by clicking here and here. Read the full report on investigation’s findings by clicking here.)
BUT – a couple very suspcious timing-related events took place on the day the SEC announced the charges.
One, someone – it doesn’t say whether they’re from the SEC or not – sent an email to a friend saying, “What a coincidence those two stories came out today. :-).”
And two, the SEC didn’t warn Goldman that the charges were coming ahead of their announcement – on purpose.
Someone has basically admitted that the SEC sucker-punched Goldman on purpose, because the SEC thought that Goldman’s PR team would immediately descend their awesome influence upon the media and change the story.
Somebody explains that the SEC didn’t warn Goldman because:
“Goldman is a pretty sophisticated player. … [T]hey’re good at the public relations game, and that … if you know that something is coming from the SEC, you can maybe take certain actions to … precondition the reporters about the case, and maybe the coverage would not be as favourable, from the SEC’s perspective.”
So instead of telling Goldman ahead of time, the SEC waited until 10 minutes after announcing the news to let Goldman know, hey, how are you, FYI, we just told the world that we charged you with fraud.
The timing, broken down to the last minute – is detailed below.
10:29 AM, April 16: The SEC files its complaint against Goldman.
10:32 AM, April 16: The SEC issues its press release about the Goldman action.
10:39 AM, April 16: A senior Enforcement staffer on the Goldman case left a message with the
secretary for Goldman’s counsel to give notice that the SEC had brought charges against Goldman and Tourre.
Oh and by the way, it’s against SEC “policy” to do this. From their handbook on press policies:
Every effort should be made to avoid the possibility that defendants in an SEC enforcement action first learn of the action when they read about it in the newspapers or when they are called by a reporter for comment about the SEC’s complaint. The division,’ regional or district office primarily responsible for the filing of a particular complaint shall take all necessary steps to see that the defendants and/or their counsel are given timely advice concerning the action.
Read more background on the findings of the investigation by clicking here >