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Jun 02 2011

Goldman Sachs Gets Subpoenas From NYC DA

Leave it to the District Attorney of Manhattan to do what the Obama DOJ failed to do, investigate properly the fraud that led to the economic crisis.

Goldman Receives Subpoena Over Financial Crisis

By Andrew Ross Sorkin and Susanne Craig

Goldman Sachs has received a subpoena from the office of the Manhattan district attorney, which is investigating the investment bank’s role in the financial crisis, according to people with knowledge of the matter.

The inquiry stems from a 650-page Senate report from the Permanent Subcommittee on Investigations that indicated Goldman had misled clients and Congress about its practices related to mortgage-linked securities.

Senator Carl Levin, Democrat of Michigan, who headed up the Congressional inquiry, had sent his findings to the Justice Department to figure out whether executives broke the law. The agency said it was reviewing the report.

The subpoena come two weeks after lawyers for Goldman Sachs met with the attorney general of New York’s office for an “exploratory” meeting about the Senate report, the people said.

From Talking Points Memo:

Manhattan DA Subpoenas Goldman Sachs Over Financial Crisis

The subpoena is apparently based on information contained in a Senate Permanent Subcommittee on Investigations report on Wall Street’s role in the housing market collapse. The report was critical of Goldman Sachs, and accused the bank of misleading buyers of mortgage-linked investments.

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  1. TMC

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