I guess all the Christian prosecutors didn't agree that GS was "doing GOD's work"...
Apr 30, 2010
Goldman trading probed
NEW YORK - US FEDERAL prosecutors are conducting a criminal probe into whether Goldman Sachs Group Inc or its employees committed securities fraud in connection with its mortgage trading, the Wall Street Journal reported on its website on Thursday.
The investigation from the Manhattan US Attorney's Office, which is at a preliminary stage, stemmed from a referral from the US Securities and Exchange Commission, the WSJ said, citing people familiar with the probe.
The SEC already has filed a civil fraud lawsuit against Goldman, the world's most powerful investment bank, charging that it hid vital information from investors about a mortgage-related security.
'Given the recent focus on the firm, we are not surprised by the report of an inquiry,' said a Goldman spokesman. 'We would fully cooperate with any requests for information.' A spokesman for the office of the Manhattan US Attorney said she could 'neither confirm nor deny' any Goldman investigation. In Washington, a spokesman said the Justice Department declined to comment.
Prosecutors have not determined whether they will bring charges in the case, the Wall Street Journal said. Any SEC referral for possible criminal prosecution would ramp up pressure on Goldman only two days after its CEO Lloyd Blankfein and other executives faced blistering cross-examinations from lawmakers at a hearing into its behavior in Washington.
In the closing hours of the questioning on Tuesday, Blankfein said that Goldman was doing some soul searching and going over its business practices as a result of the accusations it was facing. There has since been speculation that Goldman might prefer to settle the SEC case to avoid further reputational damage. -- THOMSON REUTERS
