The seemingly rock solid canyons of Wall Road were shook today by news that the US Securities and Exchange has filed charges against the huge investment firm Goldman Sachs alleging fraud in the sale of subprime mortgages that it knew would fail and deliberating misleading investors who lost an estimated $1 billion. In its lawsuit, the SEC asserted that Wall Streets most influential firm, which was founded in 1869, made and marketed ABACUS, a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities. According to reports, the case involves John Paulson, a ring fence fund shareholder whose firm Paulson & Co made billions of dollars by betting the nations housing market would crash. Paulson, no relation to Henry Paulson, former US Treasury Secretary and former Goldman Sachs authoritative, was not charged. Also named in the SEC lawsuit and charged with fraud is Fabrice Tourre, a Goldman vice president who the SEC said was mainly reliable for making the questionable mortgage product. In a one-paragraph proclamation, Goldman Sachs vowed to defend itself in court: The SECs charges are completely unfounded in law and fact. We will vigorously contest them and defend the firm and its reputation. The response, but, did small to stem shares of Goldman Sachs from falling as much as 15% in New York Stock Exchange trading Friday, causing many other banking stocks to tumble. US Rep. Steve Kagen, (D-Wis.) was one of many …