Criminal Probe Looks Into Goldman Mortgage Trading

Discussion in 'Wall St. News' started by ASusilovic, Apr 30, 2010.

  1. Federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group Inc. or its employees committed securities fraud in connection with its mortgage trading, people familiar with the probe say.

    The investigation from the Manhattan U.S. Attorney's Office, which is at a preliminary stage, stemmed from a referral from the Securities and Exchange Commission, these people say. The SEC recently filed civil securities-fraud charges against the big Wall Street firm and a trader in its mortgage group. Goldman and the trader say they have done nothing wrong and are fighting the civil charges.

    Mortgage trading is the wrong division...:cool:
  2. Daal


    Come on, selling crap and shit is against the law now?
  3. No, selling crap through GS desks might be shitty now...
  4. Exactly. The right division should be the Senate!
  5. Buy stocks!
  6. Buy Richard Bove...:D
  7. rude


    This is ridiculous.
  8. April 30 (Bloomberg) -- Goldman Sachs Group Inc. was downgraded to “neutral” from “buy” at Bank of America Corp. because federal prosecutors are weighing criminal fraud charges against Wall Street’s most-profitable firm.

    Bank of America also reduced its share-price estimate on Goldman Sachs to $160 from $220, according to a report dated today. The stock has sunk to $160.24 from $184.27 on April 15, the day before the U.S. Securities and Exchange Commission announced a civil lawsuit alleging the New York-based bank misled investors in a mortgage-linked investment.

    Federal prosecutors in New York are investigating transactions by Goldman Sachs to determine whether to pursue a criminal fraud case, according to two people familiar with the matter. The review, which lawyers say is common in such a high- profile case, is being done by the U.S. attorney in Manhattan, said the people, who weren’t authorized to comment and spoke on condition of anonymity.

    “We continue to believe that GS has long-term earnings power beyond what is discounted in the share price,” Guy Moszkowski, an analyst at Charlotte, North Carolina-based Bank of America, wrote in a report sent to clients today. “However, it is very difficult to see the shares making further progress until the matter has been resolved.”
  9. spinn


    Where is Asiaprop? This injustice against Goldman Sachs must be defeated.
  10. olias


    He should be along shortly
    #10     Apr 30, 2010