the Puypliohes did not generate enough revenue for ETS . William H. Sullivan, Jr

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the Puypliohes did not generate enough revenue for ETS . William H. Sullivan, Jr., gained control of the New England Patriots Football Club (Patriots) by forming a to make the payments required by the leaseback agree ments, so the company depended on funds from new investors to meet its obligations. In September 2000, ETS filed for bankruptcy. The the old one. Plaintiffs are a class of stockholders who voted to accept New Patriots' offer of $15 a share for their common stock in the Patriots' corporation. They now claim that they were induced to accept this offer by a misleading proxy statement drafted under the direction and ETS for failure to register securities prior to sale. The district court conclud- ed the arrangement was an "investment contract" subject to the securities laws. The Court of Appeals reversed the is correct? Did the sale of secu- lower court. Which court rities take place? (SEC Edwards, 540 U.S. 389 (2009)] ETHICS, PUBLIC POLICY,&THE; Goldman Sachs: The Gold (?) Standard of Wall Street LAW investors did not know that the standard underwriting Goldman Sachs was founded in 1869 as an origina- tor and a clearinghouse for commercial paper. Marcus practice of requiring that a company show three years Goldman, a German immigrant, founded the company of profitability before being taken public was no longer along with his son-in-law, Samuel Sachs. But the stodgy enforced. That profitability standard had been slowly negotiable instruments market proved insufficient as the firm drifted from its founders' influence and its basic roots in tangible one-on-one business loans to more complex and sophisticated financial instruments. that p eased back to one year and then to one quarter. In fact, some Internet IPOs that Goldman underwrote had not yet seen any profits and their business plans indicated rofits were not on the immediate horizon. In 1999, the same year Goldman itself went pub- lic, Goldman underwrote 47 companies. The 1990s In addition, Goldman engaged in laddering in the 1990s. Goldman and its best clients arranged for the

Explanation / Answer

1.Results when company create a business model based on loopholes and interpretation of law. Eventually when the loopholes have been detected by the government it would be rectified, but the business model once framed will not be remodeled in short duration resulting in magnified loss for the business and its stakeholders.

2. Goldman misguided his clients by giving information of the complex financial products according to his own perception of the instrument without analysing the long term impact of the financial instrument of client. Employees should learn that without proper knowledge of the instrument they should not decide to invest in it. Invest in a financial instruments only after through analysis and research in the financial instrument and there are many people in the market who would miss guide the novice investor for their own benefit.

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