At the big firms...

Goldman is getting into something big!

"The Securities and Exchange Commission on Friday charged Goldman Sachs Group Inc. with defrauding investors, alleging that Goldman let a big hedge fund fill a financial product with risky subprime mortgages and then failed to disclose that to the product's buyers.

The SEC said in the civil complaint that Goldman and Fabrice Tourre, then vice president, created and sold opaque collateralized-debt obligations, or CDOs, that hinged on the performance of subprime-mortgage-backed securities."

Innocent till proven guilty. But did you follow the other news - One of the Goldman directors, Rajat Gupta is being investigated on charges of having colluded with Raj Rajaratnam, the Galleon fund guy. And the wsj article says that this would be second guy from Mc Kinsey who will be involved in the case. Former Mc Kinsey director Anil Kumar has already pleaded guilty on charges of insider trading. This coupled with the recent article by ex BCG employee, I am wondering if it is so difficult to stick to your values at these big firms! Any thoughts to share on this one?