NEW YORK, Saturday. In a second indictment filed against the famously wealthy Wall Street firm, the SEC has shown that in an operation which closely resembled a third-rate boiler room such as those frequently found in the UK, Goldman Sachs brokers entered large orders for toxic mortgage-backed securities on clients' accounts without their consent.
Slamming is a sales technique used by call-centre personnel to reach their daily sales targets in spite of customer resistance to overstocked or otherwise unattractive products.
In a move to avoid prosecution and the revelation of even more embarassing details, the firm has admitted liability, agreed to make restitution, and has already begun a programmed trading operation in the open market to raise sufficient funds to comply with the SEC ruling. The firm’s stock price has responded negatively to the programme.
