Lawrence McDonald Thinks SEC Going After Lehman Next (Goldman Settlement)

Lawrence McDonald, former Lehman trader/VP who wrote the book "A Colossal Failure of Common Sense", thinks the SEC will go after other firms more active in the synthetic CDO space after the Goldman settlement. He told PBS Newshour, "I think the big fish that the SEC wants is Lehman Brothers". The movie might not be over for $LEH.
"Goldman Sachs was actually a third-tier player in these kind of synthetic CDOs. Other firms were much more active. And I think you will see things there in terms going after the other firms on these toxic products.

But, more interestingly, I can give you some -- I can break some news tonight. Behind the scenes, I think the big fish that the SEC wants is Lehman Brothers. Lehman Brothers' bankruptcy is 10 times the size of Enron. It's bigger than Enron, WorldCom, Adelphia combined. And I'm hearing behind the scenes, the SEC, the FBI, and the Justice Department are active in going after Lehman Brothers executives."

Find the full article and video at PBS Newshour:

Was Record Settlement Against Goldman Sachs a Good Deal for Company?

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