UK launches formal probe into Goldman Sachs

[Juche]

Source: Reuters

LONDON (Reuters) – Britain's financial regulator started a formal enforcement investigation into Goldman Sachs (GS.N) on Tuesday, four days after U.S. regulators filed a fraud case against Wall Street's biggest investment bank.

"Following preliminary investigations the Financial Services Authority (FSA) has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations. The FSA will be liaising closely with the SEC in this review," the UK regulator said in a short statement.

The U.S. Securities and Exchange Commission has accused Goldman of hiding from investors the fact that U.S. hedge fund Paulson & Co was betting against a subprime mortgage product that it helped create.

Goldman has denied the charges. The bank reports quarterly results later on Tuesday.

Read more: http://news.yahoo.com/s/nm/us_goldman

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Hopefully this is just the beginning of domestic & international investigations and eventually jail terms.

[dmosh42]

1. Maybe this is why the SEC hsa to do something?

If the Brits spill the beans ahead of our SEC, they would really look bad after dropping the ball on Madoff and other 'Ponzi' schemes. The pressure on those useless bunch at the SEC to drop this must be enormous! Once it starts, the shit will hit the fan, and heads will roll! I've been waiting for this to happen for years!

[RUMMYisFROSTED]

2. Too Big To Probe!

Their last catch phrase worked, maybe this one will, too.