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Just hitting the Bloomberg wire now.Goldman Sachs has been hit with a wells notice over 1.3 billion worth of subprime MBS from 2006.
A Wells Notice is an alert from the SEC that it may bring an enforcement action in the future.
On February 24, 2012, the firm received a “Wells” notice from the staff of the SEC with respect to the disclosures contained in the offering documents used in connection with a late 2006 offering of approximately $1.3 billion of subprime residential mortgage-backed securities underwritten by GS&Co. The firm will be making a submission to, and intends to engage in a dialogue with, the SEC staff seeking to address their concerns.