by Frances Martel
The situation at Goldman Sachs keeps getting more and more dire. The Wall Street Journal is reporting this evening that federal prosecutors are looking at criminal charges for Goldman after this week’s Senate hearings on the company’s activities during the 2007 housing crisis.
The profane emails between high-ranking Goldman officials released by the Senate seem to be the least of CEO Lloyd Blankfein and company’s problems. From the WSJ:
Federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group Inc. or its employees committed securities fraud in connection with its mortgage trading, people familiar with the probe say.
The investigation from the Manhattan U.S. Attorney’s Office, which is at a preliminary stage, stemmed from a referral from the Securities and Exchange Commission, these people say. The SEC recently filed civil securities-fraud charges against the big Wall Street firm and a trader in its mortgage group. Goldman and the trader say they have done nothing wrong and are fighting the civil charges.
The investigation is in its nascent stages, and whether Goldman will be found guilty of securities fraud or not is still undetermined.
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