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MONDAY, NOVEMBER 23, 2009
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Goldman Sachs Subpoenaed in Fraud Probe

Senate seeks evidence that banks foresaw mortgage meltdown

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(Newser) – A Senate committee has subpoenaed Goldman Sachs, Deutsche Bank, and other financial institutions as part of an investigation into mortgage-market fraud, sources tell the Wall Street Journal. The probe appears to focus on emails and other internal communications that may show bankers' doubts about the safety of mortgage-backed securities, which collapsed in value last fall and helped trigger the financial crisis.

The subpoena by the Senate Permanent Subcommittee on Investigations, headed by Michigan Democrat Carl Levin, is only the latest broadside against Goldman Sachs on Capitol Hill. Earlier this week 10 members of Congress wrote to Ben Bernanke to ask whether Goldman needs more regulation and less government aid. And health care reformers are debating what they call a "Goldman Sachs tax" after its execs' cushy insurance plans.

Goldman Sachs headquarters in New York. Goldman has been subpoenaed by a Senate subcommittee in connection with mortgage-backed securities fraud.
Goldman Sachs headquarters in New York. Goldman has been subpoenaed by a Senate subcommittee in connection with mortgage-backed securities fraud.   (AP Photo/ Louis Lanzano)
Josef Ackermann, CEO of Deutsche Bank. Deutsche has also been subpoenaed.
Josef Ackermann, CEO of Deutsche Bank. Deutsche has also been subpoenaed.   (AP Photo/Michael Probst, file)
Sen. Carl Levin, D-Mich., is leading the investigation into the collapsed mortgage market.
Sen. Carl Levin, D-Mich., is leading the investigation into the collapsed mortgage market.   (AP Photo/Haraz N. Ghanbari, File)
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3 comments
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Netstorm2k9
Jul 30, 09 6:58 AM CDT
Oh my! You mean it's possible they knew it was going to happen (planned it), and took measures to profit off of it? What are the odds. Of course, J.P. Morgan did the same thing during the Gold Crisis in the 1890s. But greed would never result in criminal actions, now, would it? Reply
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TerrifiedCitizen
Jul 30, 09 2:03 PM CDT
Forget the bankers; we didn't elect them to protect our interest. I want an investigation to indict the so-called public servants who knew perfectly well where it was all headed. Reply
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Fromthemiddle
Jul 30, 09 8:13 PM CDT
Everyone would want to invest their money with people who COULDN'T see whats coming raise their hands. Reply
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