Germany to Weigh Action on GoldmanMore at the Original URL
By MARCUS WALKER
Germany said it will ask the Securities and Exchange Commission for information in a case in which Goldman Sachs Group Inc. is accused of defrauding investors, potentially as a prelude to legal action.
"First we must ask for the documents, then evaluate [them] and then decide about legal steps," said a spokesman for German Chancellor Angela Merkel, confirming a report in German newspaper Welt am Sonntag on Saturday.
The U.S. government alleges Goldman Sachs sold mortgage investments without telling buyers they were crafted with input from a client who was betting against them.
Germany's interest in the case stems from the fact that German lender IKB Deutsche Industriebank AG bought a significant amount of the collateralized debt obligations in question, contributing to IKB's heavy losses on U.S. mortgage-related securities. Those losses led to a €3.5 billion ($4.73 billion) bailout of IKB in mid-2007, with most of the money coming from IKB's major shareholder, German state bank KfW.
http://online.wsj.com/article/SB10001424052748704246804575190313847540680.html?mod=WSJ_hpp_MIDDLTopStories
No comments:
Post a Comment