News - National
House lawmakers asks Justice for Goldman Sachs investigation
Posted: Apr 28, 2010 11:29 AM by Bea Karnes, News First 5
Updated: Apr 28, 2010 11:29 AM
A group of 62 House lawmakers wants the Justice Department to launch a criminal investigation into Goldman Sachs.
In a letter to Attorney General Eric Holder, the group alleges that "criminal fraud on a historic scale seems to have occurred."
The Securities and Exchange Commission has filed a civil fraud suit against the investment banking firm and one of its traders. The firm is accused of profiting on the housing meltdown while misleading its investors.
Most of the lawmakers who signed the letter are Democrats, including House Judiciary Committee Chairman John Conyers.
At a Senate committee hearing yesterday, Goldman Sachs CEO Lloyd Blankfein said clients who bought subprime mortgage securities from the firm came looking for risk "and that's what they got."
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