WELLY WELLY WELLS

April 17 (Bloomberg) -- Goldman Sachs Group Inc., which fell 13 percent yesterday after U.S. regulators announced fraud accusations, didn’t disclose that it was warned nine months ago that investigators wanted to bring a case, people with direct knowledge of the talks said.

Goldman Sachs responded to the so-called Wells notice from the Securities and Exchange Commission within months and met with the agency officials trying to fend off the civil lawsuit, said the people, who declined to be identified because the talks weren’t public.

In March, the New York-based firm merely said it was cooperating with regulators’ “requests for information.”

WB7: Given the huge 13% hit to Goldman's market cap Friday, are you wondering whether more should have been said by Goldman.  This will help you decide:

DISCLOSURE OBLIGATIONS UNDER THE FEDERAL SECURITIES LAWS IN GOVERNMENT INVESTIGATIONS

WB7: Either hubris or stupidity drove the Squids to decide that "cooperating with requests for information" was a sufficient disclosure of the SEC's intention to commence an enforcement action. Do you think a reasonable investor would conclude that this information significantly alters the "total mix" of available information on Goldman Squid?

What were they thinking? We are right and they are wrong? This is not material information to the market?  So far, the Squid's shareholders have paid 13% for this call.

How about it Warren?