The Wall Street Journal Model: Goldman Sachs Accused of FraudGoldman Sachs Inc is a Wall Street titan that managed to survive during a financial crisis deceiving its customers. During the financial crisis it was accused of deceiving its clients into selling them mortgage securities that had been secretly engineered by John Paulson's hedge fund firm. After designing the headlines, John made a deadly bet on the collapse of the real estate market. But Goldman denied the securities, and Drexel Burnham, who was leading the investigation, succumbed to criminal insider trading. For this reason, the accusations to which the company would have been subjected were unfounded and Goldman was fighting to defend its reputation. The civil charges against Goldman and Fabrice Tourre, a top Goldman trader, marked one of the government's biggest attacks on Wall Street. According to Roben & Paula (2010) the agreements entered into by the company are believed to have caused the financial crisis experienced by the nation and the entire world. Regulators say Paulson's firm was allowed by Goldman to assist in the design of a Collateral Debt Obligation (CDO) financial investment that was constructed from specific pools of mortgage assets that were risky, thus essentially bringing the CDO to failure. While all this was going on, CDO investors were told nothing about Paulson's role or his intentions. In 2007, Mr. Paulson went home with $4 billion for betting correctly on a real estate collapse. According to the Securities and Exchange Commission SEC, Mr. Tourre played the role of drilling the bonds together and then presenting them to investors. And before the housing market crashed… half the paper… a disaster since it was advertised. That fall hit the shareholders who lost a lot on their investment for an error that was not theirs. Having noticed that the decline in stock value was due to the company not complying with the law, stakeholders and the community did not have confidence in the company, so their willingness to invest in it decreased. This negatively affected the operation of the company in terms of reduced returns. The shareholder employees were also affected as they had no trust in the management. So companies should be transparent while making deals and should involve all stakeholders. Reference Roben, F., & Paula, D., (2010). When it comes to its role in the financial crisis, Goldman Sachs is sending a message to the world: not guilty. not even a little. Working week; 4/12/2010, number 4173, page. 30-38, 8 pages.