Goldman Sachs was one of the more famous users of Special Purpose Entity (SPEs). According to Times Magazine, Goldman was fined $550 million by the Securities and Exchange Commission (SEC) for not disclosing the true nature of this collection of mortgages to the investors. The biggest problem with ABACUS were that it enabled banks to appear to regulators and investors as if they had moved the risk of the mortgages off their books. This included low loss ratios on below prime mortgages and low default expectations on credit default exchanges. The significant risks with fair value accounting and gain on sale accounting. Although SPE was the legal structure and The Fair value accounting and Gain on Sale accounting. These gains were often made
