The SEC says Goldman failed to disclose "vital information" that one of its clients, Paulson & Co, helped choose which securities were packaged into the mortgage portfolio.

These securities were sold to investors in 2007.

But Goldman did not disclose that Paulson, one of the world's largest hedge funds, had bet that the value of the securities would fall.

oh that's just such dirty pool - unbelievable - whatever we do don't regulate the markets because corporations are our friends (deep sarcasm) http://ping.fm/gY5Ga