Justice probe of Goldman goes beyond deals cited by SEC

[chill_wind]

Source: WAPO

Justice probe of Goldman goes beyond deals cited by SEC

By Zachary A. Goldfarb and Jerry Markon
Washington Post Staff Writer
Saturday, May 1, 2010

The Justice Department's criminal investigation into Goldman Sachs goes beyond the financial transactions targeted by the Securities and Exchange Commission in the civil fraud suit brought against the firm last month, law enforcement sources said Friday.

The Justice Department probe began weeks ago and is essentially on a parallel track with the SEC investigation, the sources said. While prosecutors and investigators are focusing on some of the same mortgage-related transactions as the SEC, the sources said, the Justice Department has cast a wider net.

(...)


Other actions pending

But analysts said the criminal probe and the civil case are just two of several developments that could threaten Goldman's reputation and bottom line in coming months. The firm also was the subject of a searing Senate investigative report this week examining Goldman's role in the financial crisis. Goldman's bottom line could also suffer if the Senate, now debating reforms to financial regulation, adopts proposed changes to limit trading in derivatives and certain investment activities at banks, for instance owning hedge funds.

The U.S. attorney's office in Manhattan and the FBI are conducting the criminal probe, which sources said has been underway for weeks. Sources said a decision on whether to file any charges has not been made.

But law enforcement sources said the probe by the Manhattan U.S. attorney's office -- which is known for aggressively investigating financial fraud cases -- was not based on an SEC referral and was underway before the SEC announced the civil case April 16.


http://www.washingtonpost.com/wp-dyn/content/article/2010/04/30/AR2010043001336_2.html?hpid=topnews&sub=AR

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/30/AR2010043001336_2.html?hpid=topnews&sub=AR

[TacticalPeek]

1. Let Matt Taibbi write the bill of indictment, please.

It's only fair.

[chill_wind]

2. That would be

too sweet for words.