Goldman Expects Barrage of Subpoenas

Move could presage criminal charges
By Kevin Spak,  Newser Staff
Posted May 20, 2011 9:33 AM CDT
Goldman Sachs CEO Lloyd Blankfein listens to China's President Hu Jintao speak to leaders from the private and public sectors, Thursday, Jan. 20, 2011.   (AP Photo/Pablo Martinez Monsivais)

(Newser) – Goldman Sachs officials believe federal prosecutors are about to slap them with a series of subpoenas as it follows up on the scathing report on the company from the Senate Permanent Subcommittee on Investigations. Sources tell the Wall Street Journal that they expect the Justice Department to come knocking within days, seeking documents and other information.

That doesn’t necessarily mean that criminal charges are imminent, but investors are jittery anyway; last week one analyst recommended selling the stock just in case. “Any step in the direction of criminal charges would be bad news for Goldman’s stock price,” says one analyst. Goldman has already turned over millions of pages of documents to the Senate committee and the Federal Crisis Inquiry Commission.

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