Goldman Sachs to face 'conflicts of interest' claims

A US Senate report into the bond affair involving Goldman Sachs trader Fabrice Tourre will highlight alleged conflicts of interest in the bank's dealing with clients, according to reports today.

The Senate's permanent subcommittee on investigations could publish a report by the end of the month that would renew pressure on Goldman by focusing on complex transactions similar to a deal involving subprime mortgage-linked bonds called Abacus, which Tourre created.

Yesterday Goldman revealed for the first time how much it made from trading and investing on its own behalf during the first three quarters of the year, which many investors have suspected is a key source of the bank's profits.

The revelation was part of a review into the way it conducts business in an attempt to deal with criticism that it prioritises its own investments ahead of those of clients.

Goldman declined to comment.