Here is a new wrinkle on the Goldman case. Their lawyers supposedly argued to the SEC that they had a duty to their clients to keep the relationship with the Paulson hedge fund secret. If that is true then they created a serious conflict of interest. On the one hand Paulson's people had a hand in selecting the underlying securities for a CDO designed by Goldman which Goldman then sold to other clients and against which Paulson bet heavily. The only way tthey could serve the interests of one client (Paulson) was to betray the interests of other clients (those to whom they sold the CDOs without disclosing Paulson's role).