Insufficient evidence for Goldman Sachs charge
Friday 10 August 2012
Printable
EmailThe US Justice Department said on Thursday that it won't prosecute Wall Street firm Goldman Sachs over financial fraud.
The department said it had conducted an exhaustive investigation of allegations brought to light by a Senate panel investigating the 2008-2009 financial crisis.
"The department ... ultimately concluded that the burden of proof to bring a criminal case could not be met based on the law and facts as they exist at this time," it said.
A Senate subcommittee in 2011 found that Goldman marketed mortgage securities to banks and other investors but failed to tell clients that the securities were very risky.
The Senate panel said Goldman secretly bet against the investors' positions and deceived the investors about its own positions to shift risk from its balance sheet to theirs.
The decision capped a good day for the speculators as the Securities and Exchange Commission also decided not to file charges over a $1.3 billion (£800 million) subprime mortgage portfolio.
If you appreciated this article then please consider donating to the Morning Star's Fighting Fund to ensure we can keep developing your paper.
Editorial
Exploit Tory woes, Labour
Lord Feldman says that he didn't call grassroots Tories "mad swivel-eyed loons" while his accusers stand by their stories that he did.
Features
Let's get Britain back on track
As Aslef's annual assembly of delegates begins in Edinburgh tomorrow the general secretary explains the challenges his members - and workers across the country - face
The vicious cycle of eurozone decline
France is the latest to face clamour from the EU to enforce crippling 'structural reforms.' The medicine is killing the patient