HedgeFundLIVE.com — This story seems to never end. I’m sitting at home on Wednesday night enjoying my evening when I receive a phone call alerting me to the fact that Goldman is in trouble again. Specifically, Michigan Democratic Senator Carl Levin of “Shitty Shitty Shitty” fame, newly emboldened by the completion of his two year bipartisan investigation into the financial crisis, is on the verge of refering Goldman officials and possibly officials from other firms to the DOJ for possible prosecution and to the SEC for possible civil proceedings. From one of the articles covering the story:
The chairman of the U.S. Senate’s investigative subcommittee said he believes Goldman Sachs officials made misleading statements about their trading during the financial crisis and should be investigated criminally.
Sen. Carl Levin (D-Mich.) said on Wednesday that he plans to refer Goldman officials, and potentially officials from other organisations, to the Justice Department for possible prosecution and to the Securities and Exchange Commission for possible civil proceedings.
“In my judgment, Goldman clearly misled their clients and they misled the Congress,” said Levin, the chairman of the Senate Permanent Subcommittee on Investigations.
Levin’s statement came after a two-year, bipartisan investigation by his subcommittee. In one widely covered hearing in April 2010, as part of the investigation, senators sparred with Goldman officials over a mortgage-related product that a Goldman executive had referred to in an e-mail as a “shitty deal.”
Now, you may be thinking, “didn’t this already happen…?” Well, sort of. It was about one year ago, that Mary Shapiro and her band of merry regulators filed the Abacus complaint against Goldman and the fabulous Fabrice Tourre which was followed shortly by the Senate hearings where Sen. Carl Levin uttered his now famously desciptive adjective when referring to the “shitty deal” done by GS. Within a few short days after that very hearing, the DOJ announced that it had opened a probe into Goldman, which, according to the Manhattan US Attorney’s office, by that point had been going on for weeks. The announcement of the DOJ criminal probe took GS stock down by around 9.4% or $15 per share that day… OUCH!
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