Thursday, April 14, 2011

Goldman Sachs accused of misleading investors, knew mortgage-backed investments would fail

A US Senate probe says Goldman Sachs misled investors selling mortgage-backed investments it knew would fail.

The Senate Permanent Subcommittee on Investigations has spent two years looking at the behaviour of Wall Street banks at the time of the credit crisis.

It said Goldman had also misled Congress in a testimony given in 2010.

A Goldman Sachs spokesman said the testimony given by its executives had been "truthful and accurate", and the bank took the issues raised seriously. (read more)