If you thought the media was starting to lose interest in that Goldman Sachs fraud case, think again.

The Wall Street Journal:

Federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group Inc. or its employees committed securities fraud in connection with its mortgage trading, people familiar with the probe say.

The investigation from the Manhattan U.S. Attorney’s Office, which is at a preliminary stage, stemmed from a referral from the Securities and Exchange Commission, these people say. The SEC recently filed civil securities-fraud charges against the big Wall Street firm and a trader in its mortgage group. Goldman and the trader say they have done nothing wrong and are fighting the civil charges.

The New York Times;

Federal prosecutors have opened an investigation into trading at Goldman Sachs, raising the possibility of criminal charges against the Wall Street giant, according to people familiar with the matter. While the investigation is still in a preliminary stage, the move could escalate the legal troubles swirling around Goldman.

The Washington Post;

The Securities and Exchange Commission has referred its investigation of Goldman Sachs to the Justice Department for possible criminal prosecution, less than two weeks after filing a civil securities fraud case against the firm, according to a source familiar with the matter.

…”Given the recent focus on the firm, we’re not surprised by the report of an inquiry,” said Goldman spokesman Lucas Van Praag. “We would cooperate fully with any request for information.”

Not surprised eh?

Related link:
All over Goldman: Democrats ask for criminal investigation – The Atlantic

This entry was posted by Neil Hume on Friday, April 30th, 2010 at 10:37 and is filed under Capital markets, People. Tagged with Abacus, goldman sachs, Manhattan U.S. Attorney's Office, sec. Edit this entry.