Friday, 30 April 2010

Goldman Sachs: US Opens Criminal Investigation into Fraud

THE TELEGRAPH: US federal prosecutors have opened a criminal investigation into whether Goldman Sachs Group Inc or its employees committed securities fraud in connection with its mortgage trading.

The investigation by the Manhattan US Attorney's Office, which is at a preliminary stage, stemmed from a referral from the US Securities and Exchange Commission, the Wall Street Journal reports.

The SEC already has filed a civil fraud lawsuit against Goldman, charging that it hid vital information from investors about a mortgage-related security.

A spokesman for the office of the Manhattan US Attorney said she could "neither confirm nor deny" the existence of any Goldman investigation. >>> | Friday, April 30, 2010