SEC voted 3-2 to charge Goldman Sachs: report

WASHINGTON (BestGrowthStock) – The U.S. Securities and Exchange Commission split along party lines when deciding whether to charge Goldman Sachs (GS.N: ) with fraud, Bloomberg News reported on Monday, citing two people with knowledge of the vote.

SEC Chairman Mary Schapiro voted along with fellow Democratic commissioners Luis Aguilar and Elisse Walter to authorize the charges, while Republicans Troy Paredes and Kathleen Casey voted against bringing the charges, Bloomberg said.

The SEC declined to comment about the report.

Goldman’s stock closed up about 1.6 percent, or $2.62, to $163.32.

“The fact that the vote was close has been the proximate cause for the stock’s rally. This means it wasn’t a clear cut decision by the SEC,” said Doug Kass, president of hedge fund Seabreeze Partners Management

The SEC on Friday accused the biggest and most influential U.S. securities company of hiding from investors the fact that a prominent hedge fund manager helped create a subprime mortgage product and was betting against it.

(Reporting by Karey Wutkowski; editing by Carol Bishopric)

SEC voted 3-2 to charge Goldman Sachs: report