DOJ, SEC to Probe Goldman After Senate Recommendation

U.S. senators formally referred to the Justice Department and the SEC an investigative report that found Goldman Sachs (GS) misled clients about mortgage-linked securities. Senators Carl Levin of Michigan, the Democratic chairman of the Permanent Subcommittee on Investigations, Tom Coburn of Oklahoma, the senior Republican, signed a letter asking the agencies to examine the panel’s report, Levin said in an interview yesterday. The results of the investigation, made public by the committee April 13, lay much of the blame for the credit crisis on Wall Street banks that earned billions by enticing clients to buy the risky bond deals. – Bloomberg