Goldman Sachs subpoenaed for failing to cooperate with finance probe
WASHINGTON Ã¢â‚¬â€ A high profile panel investigating the causes of the financial crisis announced Monday it had subpoenaed Goldman Sachs for failing to cooperate with the probe.
“The Financial Crisis Inquiry Commission has issued a subpoena to Goldman Sachs & Co. for failing to comply with a request for documents and interviews in a timely manner,” the body said in a statement.
It is the latest controversy for the New York-based bank, which is facing civil and potentially criminal charges for misleading investors.
“The Commission has made it clear that it is committed to using its subpoena power if there is a lack of, or delay in, compliance,” the commission’s chair Phil Angelides said in statement.
“Failure to comply with a Commission request is viewed with the utmost seriousness, as the Commission will not be deterred from getting desired information.”
The Securities and Exchange Commission has charged Goldman of defrauding investors “by misstating and omitting key facts” about a financial product based on subprime mortgage-backed securities.
The charges, which are vigorously denied by the company, has prompted executives to be hauled before Congress, wrecking the company’s status as one of the few Wall Street firms to emerge from the financial crisis with its reputation in tact.
Chief executive Lloyd Blankfein recently told shareholders that allegations were “difficult and disappointing for the firm,” adding that he was concerned about the company’s increasingly battered image.