Goldman Sachs fraud charges ‘just the tip of the iceberg’

Charges of fraud brought against banking titan Goldman Sachs by the Securities and Exchange Commission rocked financial markets Friday, but experts say the allegations are merely the first of many to come, Reuters reported.

After the SEC went public with the allegations, the Dow Jones dropped 125 points and Goldman Sachs stocks dropped 13 percent — the largest one-day drop in company history.

"This is just the tip of the iceberg," said James Hackney, a professor at Northeastern University School of Law. "There are a lot of folks out there in different deals who played similar roles, and once it starts building steam, plaintiffs' lawyers will figure out this is where the money is and there should be a lot of action."

Reuters Global editor at large Chrystia Freeland said the significance of the charges is "huge."

Goldman Sachs' members like to think of themselves as "the smartest, the richest," but Freeland said they also like to think of themselves as the "most virtuous."

"Someone once said, 'I don't want to be just another rich guy in New York,'" she recalled. "They want o be part of civil service, part of government, doing good, giving back."

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