1 May 2010

Further investigation into Goldman

6:04 am on 1 May 2010

Goldman Sachs is reportedly under criminal investigation by federal prosecutors in New York for the way in which it sold complex mortgage-backed products to clients.

Two weeks ago, the US Securities and Exchange Commission brought civil charges against the bank for defrauding investors.

Goldman was accused of hiding information from investors about a mortgage-related security.

Earlier this week, Goldman executives were cross-examined by Senators at a hearing into their behavior in trading mortgage-related products as the US housing market began to crumble in 2007.

Goldman denies the accusations and said it was "not surprised" by the reports of criminal investigations, given the recent focus on the bank.