What generally would be a hip-hip-hooray for market-watchers worldwide has been questioned this week by the Security and Exchange Commission’s (SEC) suit, filed last week, against investment banking giant Goldman Sachs. Reports of 2010’s first quarter showed the investment bank’s profits to exceed $3.46 billion, up from $1.8 billion a year ago. The New York Times stated that profits jumped 91% in 2010.

Lloyd Blankfein was recently quoted, saying, ‘the results reflected “more signs of growth across the economy and the strength of our client franchise.” Of course he would say that – he is CEO of the corporation. But do stockholders feel the same? Shareholders’ support did not decline as much with the release of the report despite the company facing the SEC’s suit. Last week the SEC sued for fraud stating that the company “improperly failed to disclose that Paulson & Co., a hedge-fund firm betting that subprime-mortgage defaults would climb, helped choose securities for a so-called synthetic collateralized debt obligation with a plan to wager it would collapse.”

Will investors of Goldman Sachs continue to support the “fraudulent” company? The following weeks and the suit will reveal the company’s supposed successful quarter or its blemished, corrupted actions.

Related posts:

1. Crisis on Wall Street deters finance majors
2. My Big Fat Greek Financial Collapse
3. The return of food crisis: Is corporate greed to be blamed?
4. Beware of the big bad bank:
5. Student Coalition for Action discusses responsible investment