Goldman Sachs Group Inc. (GS) misled clients and Congress about the firm’s bets on securities tied to the housing market, the chairman of the U.S. Senate panel that investigated the causes of the financial crisis said. Senator Carl Levin, releasing the findings of a two-year inquiry yesterday, said he wants the Justice Department and the SEC to examine whether Goldman Sachs violated the law by misleading clients who bought the complex securities known as CDOs without knowing the firm would benefit if they fell in value.
Levin also said regulators should look into possibly bringing perjury charges against Goldman Sachs CEO Lloyd Blankfein and other current and former GS employees who were called to testify in front of Congress last year.
“In my judgment, Goldman clearly misled their clients and they misled the Congress,” the Senator said. – Bloomberg