Source: Marcy Gordon / AP / The Huffington Post
WASHINGTON — The U.S. attorney’s office in Manhattan is conducting a criminal investigation of Goldman Sachs over mortgage securities deals the big Wall Street firm arranged, a knowledgeable person said Thursday.
The person said the probe stems from a criminal referral by the Securities and Exchange Commission. The source spoke on condition of anonymity because the inquiry is in a preliminary phase. The SEC earlier this month filed civil fraud charges against Goldman and a trader in connection with the transactions, alleging it misled investors by failing to tell them the subprime mortgage securities had been chosen with help from a Goldman hedge fund client that was betting the investments would fail. Goldman has denied the charges and said it will contest them in court.
News of the action came a day after a group of 62 House lawmakers, including Judiciary Committee Chairman John Conyers, D-Mich., asked Justice to conduct a criminal probe of Goldman.
SEC spokesman John Nester wouldn’t confirm or deny that the agency had made a referral to the Justice Department for a criminal investigation. He declined any comment on the matter, as did Yusill Scribner, a spokeswoman for the U.S. attorney’s office in Manhattan.
To read this article in its entirety visit The Huffington Post.
Sphere: Related Content
Related Posts
Source: Ryan Grim and Shahien Nasiripour / The Huffington Post
A move to break up major Wall Street banks failed Thursday night ...
READ MORE
Source: Sam Stein / The Huffington Post
In late August, when town hall protests were putting the prospects of health ...
READ MORE
Source: Ryan Grim / The Huffington Post
Mitch McConnell has rounded up the necessary votes to block Democrats from bringing Wall Street ...
READ MORE
Source: Ieva M Augstums/AP/Huffington Post
Bank of America Corp. is giving some of its most troubled mortgage borrowers relief from ...
READ MORE
Source: Dave Carpenter / The Huffington Post
A survey released Monday by financial data publisher Bankrate.com found that only 24 ...
READ MORE
Whether it be the jobs crisis, the foreclosure epidemic or the our nation's vast prison population, there is a ...
READ MORE
Source: AP / The Huffington Post
Washington— Striving to gain the upper hand on a crucial political issue, President Barack ...
READ MORE
Source: MSNBC.com
Washington — U.S. President Barack Obama signed into law the most sweeping financial regulatory overhaul since the Great Depression ...
READ MORE
Source: USA Today
A spate of negative economic reports Thursday increased worries about the economy's recovery from a nasty recession.
The Labor ...
READ MORE
Source: Jia Lynn Yang / The Washington Post
Democratic leaders are going back to the table to hammer out new rules ...
READ MORE
Senate Votes For Wall Street; Megabanks To Remain
Obama Wall Street Speech Set, President Will ‘Go
Unified GOP To Block Senate From Debating Wall
Bank Of America To Start Reducing Principal On
24 Percent Of American Consumers Have No Emergency
7 Shocking Facts About Minority Unemployment
Obama To Go After GOP On Economy, Tax
Obama Signs Broad Reform Of Financial Regulation Into
Flurry of Negative Economic Reports Dampen Recovery Hopes
Democrats Regroup Over Financial Reform After Sen. Brown
WASHINGTON — The U.S. attorney’s office in Manhattan is conducting a criminal investigation of Goldman Sachs over mortgage securities deals the big Wall Street firm arranged, a knowledgeable person said Thursday.
