Investigators Demand Information From Major US Bank

Posted June 2nd, 2011 at 11:25 am (UTC-5)
Leave a comment

Investigators are demanding information from one of the largest U.S. banks, seeking details on the firm’s activities leading into the financial crisis.

New York prosecutors have sent a subpoena to Goldman Sachs, which says it will “fully cooperate” with officials. The subpoena is a formal legal demand for information, and not an accusation of wrongdoing.

The prosecutors’ action follows a U.S. Senate investigation that indicated that Goldman had misled clients and Congress about its practices regarding securities made up of mortgages.

Many mortgage-backed securities collapsed in value and were one of the things that sparked the financial crisis.

Goldman ranks fifth among U.S. banks in terms of assets.