Last turbulences kept the S&P 500 near to lose the level of 1000 points. Just after the aperture was trying to reach the 1060 points, still very far from the forecasts of Goldman Sachs.

Abby Joseph Cohen, strategist of Goldman Sachs, discarded the threat of a double recession in the macroeconomic landscape. According Abby Joseph Cohen, the main threat on American economy is: “the labor market. Its obvious that the employment creation has been reactivated , but done it too slowly”.

In his forecasts considers a GDP growth in the United States by 2,9% for this year, contrasting with the 2,4% of new contracts. Furthermore the Federal Reserve will wait “the longest possible” before beginning to raise interest rates.

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The Securities and Exchange Commission accused Goldman Sachs of committing fraud in the structure and commercialization of CDO’s. These financial products of non-equity share,gathered under a single umbrella several different kinds of emissions, among them, high risk mortgages.

The Securities and Exchange Commission has several reasons to accuse Goldman Sachs, first of all the SEC pointed that “the vice president of Goldman Sachs, Fabrice Tourre, defrauded the investors when launching incorrect information and omitting key details about the financial products aggregated to trash mortgages, when the residential market of the united states began to give debility signs”. This CDO was known as Abacus, whose responsible was Tourre himself.

In his declaration, the Securities and Exchange Commission also alleged that “the risk equity fund, Paulson & Co, paid to Goldman Sachs a transaction where they could take short positions against mortgage backed values”.

According the information apported by the government of the United States, Paulson & Co could have paid $15 million for structures in a collateral debt emission, that closed o April 26th of 2007. Nine months lather, the 99.5 % of the equities could be got degraded, assured the Securities and Exchange Commission , and according the calculations from the institution, could have caused loses higher than $1000 million.

The answer of Goldman Sachs calificated the accusations from the Securities and Exchange Commission as “totally unfounded”. “The accusations by the Securities and Exchange Commission are totally groundless in fact and right, and we will defense ourselves with determination to defend Goldman Sachs and its reputation”, said Goldman Sachs in a short communication.

According the Securities and Exchange Commission , Goldman Sachs did not say to investors that they were buying his CDO that really Paulson & Co participated in the design of the product and pressed to include low quality mortgages, Goldman Sachs said the investors that the mortgages were selected by ACA, an independent firm.

The director of the surveillance division in Securities and Exchange Commission , Robert Khuzami, detailed that “this is a new and complex product but the deception and the conflict are ancient and simple” the Securities and Exchange Commission pointed that Goldman Sachs “accepted mistakenly amongst it customers somebody that was betting among the market of mortgage backed equities”.

Since that turbulences in mortgage markets began in 2007, Goldman Sachs had been recognized by investors as one of the biggest winners of the financial crisis and is considered as one of the most influential entities worldwide.

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The investors of the big apple have braked their purchases in Wall Street after the analyst Meredith Whitney downgraded this morning the recommendation to Goldman Sachs. The news generated some fear of bankrupt in the yard

Today, the Dow Jones decreased by 0,16% to 9870 points, while the selective Standard & Poor’s 500 felt by 0’18% to 174,54 points.

The financial system has been shacked today in Wall Street by Goldman Sachs after Meredith Whitney downgraded the recommendation from ‘buy’ to’ keep’, this new affected the investors, that far from fearing a bankrupt, they have a lot of good expectations with Goldman Sachs. The Shares of Goldman Sachs plumbed a 2% bringing with them the major part of the economies in this industry.

The deception generated in the yard of Wall Street by Whitney’s recommendation, shadowed the release of the Johnson & Johnson’s results, that could beat the expectations in the market and improved the prediction of profits for the rest of the year. Their shares lost more in Wall Street than the ones of Goldman Sachs, felt by a 2’5%.

Out of the scene,In Wall Street, there is also the new acquisition made by Cisco, that will pay $2.900 million for Starent Networks, what supposes a prime of 21%. This is the second purchase made by the american giant in just 12 days.

Worse than Goldman Sachs are the news from City Group, that is very close of the bankrupt and furthermore has announced the resign of his president, Jeffrey Peek, that will abandon the company the next December 31st . The decision isn’t more than other try to prevent bankrupt as many others the company has achieved to scape from extinction. Their shares felt in Wall Street by 14%

The banking system is the protagonist of Wall Street, and not just by Goldman Sachs and City Group, also Sheila Bair the president of FDIC, the federal deposit insurance corporation, admitted in an interview that the bankrupt of banks will keep strong in EEUU until 2011 and 2010 will be a relatively difficult year.

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