U.S. federal prosecutors are conducting a criminal investigation to determine whether to charge Goldman Sachs (GS) or its employees with criminal securities fraud, according to a Wall Street Journal report Thursday.
The investigation from the Manhattan U.S. Attorney’s Office is at a preliminary stage and prosecutors haven’t determined whether they will bring charges in the case, the paper said, noting that the criminal probe resulted from a referral from the SEC.
A Goldman spokesman said the firm was not surprised at the news. Reuters: “Given the recent focus on the firm, we are not surprised by the report of an inquiry. We would fully cooperate with any requests for information.”
Goldman shares lost $4.16, or 2.60%, in after-hours trading to $156.08 after the Journal reported the news on the possibility of criminal charges against the firm. At the 4 p.m. market closing, GS shares were up more than 2%.