U.S. Opens Criminal Investigation Into Goldman Sachs
Ratcheting pressure on Goldman Sachs two days after its executives were grilled and rebuked in the public glare, the Justice Department has opened a criminal investigation …
At Congress Thursday,the Senate lurched into action on sweeping legislation backed by the Obama administration that would clamp down on Wall Street and the sort of high-risk investments that nearly brought down the economy in 2008.
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The Justice Department and the SEC have previously launched wide-ranging investigations of companies across the financial services industry. But a year after the crisis struck, charges haven’t yet come in most of the probes. … The government must show that executives were actually committing fraud and not simply doing their best to manage the worst financial crisis in decades, some legal experts say. … To prove it, they say, the agency must show that Goldman misled investors or failed to tell them facts that would have affected their financial decisions. …The issues involved are so complex that Goldman may be able to introduce enough complicating factors to shed some doubt on the SEC’s claims.
Political intrigue has swirled around the SEC suit, meanwhile, as some Republicans have accused the agency of timing the April 16 announcement of fraud charges against Goldman to bolster prospects for the financial overhaul legislation while it was at a critical stage in the Senate.
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SEC Chairman Mary Schapiro has insisted there was no connection between the timing of the agency lawsuit, which followed a monthslong investigation of the firm, and the push for the legislation in the Senate. Last week, President Barack Obama denied any White House involvement in the timing of the SEC case. …
(Excerpt) Read more at foxnews.com
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