-Goldman Sachs receives subpoena on Senate investigation.
Global Banking News - 06 June 2011
US investment bank Goldman Sachs (NYSE: GS) has received a subpoena from the Manhattan District Attorney's office, seeking information relating to the conclusions of a pejorative Senate investigation into the company and some other US banks earlier this year, The Independent has reported.
Cyrus Vance, the District Attorney has sought the information after the Senate Permanent Sub-committee on Investigations said that the bank has sold mortgage derivatives to its clients while concurrently betting that the mortgage market was tumbling. It also alleged that Goldman executives may have lied under oath at Senate hearings on the subject.
Last year, Goldman paid USD550m to settle fraud charges from the Securities and Exchange Commission, relating to a particular mortgage derivative, the report said, adding that the US Justice Department is also investigating the bank.
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