Thursday, September 9, 2010

FSA opened its investigation into Goldman in April

The FSA opened its investigation into Goldman in April after the SEC filed its charges. The SEC claimed that Goldman had failed to disclose that a hedge fund that was betting against the security had selected some of the mortgage loans included in the portfolio, costing investors as much as $1bn.

Goldman, the world's best-known investment bank, has seen its reputation tarnished in recent months as questions continue to swirl over whether it favoured the interests of some clients at the expense of others during the financial crisis.

The bank's business model is also under pressure amid volatile markets and regulatory reforms that have forced it to shut some of its highly profitable "proprietary" trading operations.

On Wednesday it emerged that KKR, the private equity firm, is in early talks with individuals in Goldman Sachs' proprietary trading group that could lead to the hiring of a number of Goldman's key people.

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