Wall Street major league player Goldman Sachs was charged today by the Securities and Exchange Commission with subprime loan fraud – a charge that the firm vehemently denies.  According to MSNBC.com,

In its lawsuit, the SEC alleged that Goldman structured and marketed ABACUS, a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities.

It alleged that Goldman did not tell investors “vital information” about ABACUS, including that Paulson & Co was involved in choosing which securities would be part of the portfolio.

The charges come as the government is looking to expand regulatory efforts that would hold companies and their manager accountable for the nation’s financial crises.  The charges were so severe that the stock market tumbled today by 125.91 points.