Goldman Sachs (GS) management expects to be served subpoenas soon from U.S. prosecutors looking for more data concerning the firm’s mortgage unit, the WSJ reports, citing people familiar with the matter.
Officials at the New York – based company, which remains a focal point for public anger as a result of its actions during the financial crisis, believe the Justice Department [DOJ] will ask for documents and other information possibly within days, the Journal said.
Lat month, Sen. Carl Levin, whose 639-page report accused the firm of making a huge bet against the housing market while misleading investors and putting its interests ahead of those of clients, announced he had forwarded his committee’s findings on the financial crisis to the DOJ.
Sen. Levin has said Goldman should be investigated criminally for its actions during the subprime mortgage crisis. But many agree that it’s not likely that a subpoena will lead to criminal charges.
One analyst told the Journal, “U.S. prosecutors are unlikely to bring criminal charges against Goldman because they probably already have seen much of the information amassed by the SEC during its civil investigation.”
GS lost $1.04, or less than one percent, to $138.31 at 11:30 am E.T. in Nasdaq composite trading.