One of the more well-known users of Special Purpose Entity (SPEs) was Goldman Sachs. According to Times Magazine (2012). Sachs was also penalized roughly over $500 million by the Securities and Exchange Commission (SEC) for concealing the truth about the collection of mortgages to the investors. The biggest problem was this enabled banks to give the impression to regulators and investors that all of the risk of the mortgages was removed off their books. This included loss ratios on low-key mortgages and decrease default potentials. These advances were often made with suspect evidence about performance over many years. Although Special Purpose Entity (SPE) was the legal structure for the fair value and gain on Sale accounting. According to
