Goldman ‘must explain behaviour’

Goldman Sachs sign on the floor of the NYSEGoldman Sachs was heavily criticised by a Senate report in April
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New York prosecutors have asked Goldman Sachs to explain its behaviour in the run-up to the financial crisis, according to several news agencies.

They quote sources saying that the investment bank received a subpoena from the Manhattan district attorney.

Goldman is already being investigated by the Justice Department and the Securities and Exchange Commission.

An April Senate report said Goldman had encouraged investors to buy mortgage-based products it knew would fail.

The report said that Goldman had shifted risk from its own balance sheet onto investors, while deceiving them about the bank’s own positions.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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