US widens Goldman Sachs probe
11 April 2012
New York prosecutors are widening their investigation into the manner in which Goldman Sachs marketed certain mortgage-linked securities before the financial crisis, according to reports today.
The Manhattan district attorney's office began its probe into Goldman following the release in April of a U.S. Senate subcommittee report into the causes of the financial crisis.
The district attorney's office has issued subpoenas to Morgan Stanley and other investors in the deals. The prosecutor's requests to investors, including some hedge funds, concern how Goldman sold the deals, the Wall Street Journal said.
Subpoenas do not indicate wrongdoing. They are formal requests for information and do not necessarily mean charges are forthcoming or likely.
