Shares of Goldman Sachs (NYSE: GS) tumbled on Thursday, down 2.5 percent to a new 52-week low of $133.50 as reports surfaced that the Securities and Exchange Commission is now probing a second collateralized debt obligation (CDO) deal, called Hudson Mezzanine 2006-1.
The Hudson Mezzanine deal occurred in December of 2006, which Goldman underwrote and sold. According to reports, Goldman was the only investor that was short the investment by buying derivatives against the $2 billion in assets that backed the CDO.
Goldman Sachs was first probed about its CDO activity in April when SEC officials sought information on a deal called Abacus 2007-AC1. In that deal, billionaire hedge fund manager John Paulson helped structure the deal, while then shorting the investment.
Shares of Goldman Sachs are down roughly 28 percent since the SEC launched its initial probe in April. The investigation is still ongoing as a settlement has not been reached and Goldman denies anywrong doing.
