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If the charges are true, then there is no doubt that there was wrongdoing and that goldman should get nailed.
This area of the meltdown is absolutely the part where corporate inpropriety existed. These subprime mortgages became, in essence, the hot potato of commodity trading. Everyone would buy them and then pass them on quickly before getting "caught" with them when it all tumbled down. To this end, few seemed ethical enough to resist the temptation of high profits for big fees and admit the risk was simply to great to take.
One has to consider that, if these loans had not been insured by "too big to fail" (FDIC, Freddie, Fannie) stuff, they would not have existed. No bank would have written these loans unless
a) they were forced to.
b) they knew they could sell them quickly.
c) they knew if they failed they would get bailed out.
The problem, at its core, is that loans were created which should have NEVER been written. There are more entities than just greedy banks responsible for these loans.
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Gives a man a halo, does mead.
"Here lies The_Jazz: Killed by an ambitious, sparkly, pink butterfly."
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