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Latest News

Goldman Sachs scandal unfolds, European governments to investigate

World markets may reel as Goldman Sachs scandal unfolds, “moral bankruptcy” alleged

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April 20, 2010 10:29 by



Goldman Sachs is being investigated by Germany and Britain as it is also sued by the U.S. Securities and Exchange Commission (SEC) over charges of theft and fraud, according to a report in Tuesday’s Al-Akhbar.

Observers suspect further scrutiny and potential prosecution, as Goldman Sachs suggests that the company may have generated millions of dollars in profits each year at the expense of its customers, even when financial markets were crashing, the report indicated.

British Prime Minister Gordon Brown urged his country’s Financial Services Authority to investigate the allegations against Goldman, voicing shock at the “moral bankruptcy” alleged in the SEC’s case.

As for European countries, German officials pointed out that they would conduct their own due diligence regarding the charges, particularly with respect to the company’s role in securing Greek government loans, Al-Akhbar added.



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