Goldman Sachs said to get subpoena from New York prosecutor
Baku, June 3 (AZERTAC), Goldman Sachs Group Inc. (GS), the fifth- biggest U.S. bank by assets, was subpoenaed by the Manhattan District Attorney`s office for information on the firm`s activities leading into the credit crisis, two people familiar with the matter said.
The subpoena relates to the U.S. Senate`s Permanent Subcommittee on Investigations report on Wall Street`s role in the collapse of the financial markets, which accused New York- based Goldman Sachs of misleading buyers of mortgage-linked investments, the people said, speaking on condition of anonymity because the inquiry isn`t public.
Goldman Sachs has dropped 16 percent in New York trading since the Senate subcommittee, led by Michigan Democrat Carl M. Levin, used the firm as a case study in a 640-page report on its findings released in April. At the time, Levin said Goldman Sachs had also misled Congress about the company`s bets on the housing market. The firm has said its testimony was truthful.
A subpoena is a request for information and doesn`t mean the company is a target of a criminal investigation. Analysts including Sanford C. Bernstein & Co.`s Brad Hintz have said they don`t expect the firm to be criminally prosecuted.
Erin Duggan, chief spokeswoman for Manhattan District Attorney Cyrus Vance Jr., declined to comment.
Goldman Sachs dropped 1.3 percent to $134.38 in New York Stock Exchange composite trading yesterday.
The Senate report was referred to the U.S. Department of Justice and the Securities and Exchange Commission, which are also investigating.
Levin said when his report was released that federal prosecutors should review whether to bring perjury charges against Goldman Sachs Chairman and Chief Executive Officer Lloyd Blankfein, 56, and other current and former employees who testified to Congress last year. Levin said they denied under oath that Goldman Sachs took a financial position against the mortgage market solely for its own profit, statements the senator said were untrue.
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