As if Goldman Sachs didn’t already have enough problems with the SEC’s civil probe of the firm and senators screaming at execs about the “shitty deals” offered to clients, word is out now that federal prosecutors are investigating the company. According to reports out this morning, the investigation is just starting up, and no charges have been made against the company.
According to The New York Times:
The Securities and Exchange Commission, which two weeks ago filed a civil fraud suit against Goldman, referred its investigation to prosecutors for the Southern District of New York, which has now opened its own inquiry.
Goldman has vigorously denied the accusations by the S.E.C., which accused Goldman of defrauding investors involved a complex mortgage deal known as Abacus 2007-AC1.
Federal prosecutors would face a higher bar in bringing a criminal case against Goldman, whose role in the mortgage market came under sharp scrutiny this week during a marathon hearing in the Senate. In contrast to civil cases, the burden of proof is higher in criminal ones, where prosecutors must prove their case beyond a reasonable doubt.
A Goldman spokesman said that, “given the recent focus on the firm, we’re not surprised” about the investigation, and said the company would cooperate with investigators.
Sen. Carl Levin has yet to weigh in, though we’re eager to hear what he has to say about this latest f*cking sh*t.
Prosecutors Said to Start Inquiry at Goldman [NYTimes.com]
PREVIOUSLY: Senator To Goldman Sachs: “Why Did You Push A Shitty Deal?”