Goldman Falls the Most in a Year, Pushing Banks Lower

Goldman Sachs stock tumbled 13% after the SEC charged the bank with fraud related to packaging and selling collateralized debt obligations linked to subprime mortgages. The most profitable firm on Wall Street erased its gain for 2010. The fraud charge against Goldman Sachs created a big uncertainty in the banking industry. First, after this incident all other financial insititutions on Wall Street would be closely scrutinized by the SEC. Second, as this lawsuit comes, president Obama is trying to pass the largest set of financial regulations since the Great Depression years. As Paul Miller, a former bank examiner at Fed said: "Regulatory risk just got a lot bigger". Basically, there is a lot of uncertainty going on in the banking industry, so watch out!!!