The suit says that the notes were marketed as a synthetic CDO that was tied to the performance of major companies and sovereign nations with high credit ratings.
The charge is in connection with the sale of a synthetic collateralized debt obligation that was tied to the performance of subprime residential mortgage-backed securities.
In that case the SEC alleged that Goldman misstated and omitted key facts regarding a synthetic collateralized debt obligation (CDO) it marketed which hinged on the performance of subprime residential mortgage-backed securities.