Reply #44: U.S. SEC, Justice Department Probe Goldman Findings After Senate Referral

[Demeter]

http://www.bloomberg.com/news/2011-05-03/levin-report-accusing-goldman-of-deception-referred-to-u-s-justice-sec.html

U.S. senators formally referred to the Justice Department and the Securities and Exchange Commission an investigative report that found Goldman Sachs Group Inc. (GS) misled clients about mortgage-linked securities.

Senators Carl Levin of Michigan, the Democratic chairman of the Permanent Subcommittee on Investigations, Tom Coburn of Oklahoma, the senior Republican, signed a letter asking the agencies to examine the panel’s report, Levin said in an interview yesterday. The results of the investigation, made public by the committee April 13, lay much of the blame for the credit crisis on Wall Street banks that earned billions by enticing clients to buy the risky bond deals.

“If something comes up that needs to be reviewed by some agency, it gets referred,” said Levin. “That’s the way we do it.”

The scrutiny is a setback for Goldman Sachs, which hired lawyers, lobbyists and public relations specialists to monitor the two-year Senate probe and tamp down any controversy that arose from the subcommittee’s conclusions...