Sixty DEM lawmakers urge SEC to broaden Goldman probe

[babylonsister]

Sixty lawmakers urge SEC to broaden Goldman probe
By Jay Heflin - 04/26/10 09:47 AM ET


The letter from five dozen House Democrats comes a day before Goldman executives testify on Capitol Hill.

Five dozen House Democrats have signed a letter calling on the Securities and Exchange Commission (SEC) to broaden its fraud investigation of Goldman Sachs.

The SEC alleges Goldman did not tell investors a hedge fund betting against a security marketed by Goldman was involved in setting up the mortgage-backed product. The suit focuses on one security.

Democrats, led by Reps. Elijah Cummings (D-Md.) and Peter DeFazio (D-Ore.), contend there could be 24 additional instances of fraud because Goldman peddled not one but 25 of these instruments to investors.

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http://thehill.com/blogs/on-the-money/banking-financial-institutions/94267-60-lawmakers-urge-the-sec-to-broaden-goldman-investigation