Distribution Network
Content
Goldman Sachs has been formally placed under investigation by the UK Financial Services Authority after the Wall Street bank was charged with fraud worth $1billion by US regulators.
The company will have its international arm investigated by the City watchdog to determine its involvement in last week’s accusations that the firm intentionally misled borrowers about ‘toxic’ mortgages to then profit through a hedge fund that was short-selling on them. In essence, the Goldman Sachs stands accused of betting against its own bad products.
One of the company’s London-based executives has already been implicated in the charges brought by the US Securities and Exchange Commission.
Goldman Sachs denies any wrongdoing and says it has not broken the law in what may the most significant case of alleged irresponsible lending to come out of the financial crisis. The action taken by regulators is being seen as a sign of a clampdown on the issue.
The company will have its international arm investigated by the City watchdog to determine its involvement in last week’s accusations that the firm intentionally misled borrowers about ‘toxic’ mortgages to then profit through a hedge fund that was short-selling on them. In essence, the Goldman Sachs stands accused of betting against its own bad products.
One of the company’s London-based executives has already been implicated in the charges brought by the US Securities and Exchange Commission.
Goldman Sachs denies any wrongdoing and says it has not broken the law in what may the most significant case of alleged irresponsible lending to come out of the financial crisis. The action taken by regulators is being seen as a sign of a clampdown on the issue.
Super Featured
No
Featured
No