The New York Post reports that a nine month criminal probe by the Department of Justice into Goldman Sachs is unlikely to lead to criminal charges.The investigation examined whether Goldman Sachs and its executives misled clients and lied to lawmakers.
The Post’s report is based on “sources close to Goldman”, so as always, grain of salt, etc.
However, if the probe does in fact end without charges, it would be a coup for the bank.
The criminal investigation was sparked by the harshly critical report that Senator Carl Levin (D-MI) issued after CEO Lloyd Blankfein and other Goldman executives testified before the Senate Permanent Subcommittee on Investigations.
The testimony was focused on Goldman’s role in creating and selling various mortgage backed securities and coincided with the SEC’s investigation into the now infamous Abacus transaction. Goldman paid a record $550 million fine to settle charges stemming from the SEC’s investigation into that deal.