GENEVA, SWITZERLAND – The US Senate report took months to compile and much of it is damning concerning the role of Goldman Sachs and some of its employees in the US mortgage market debacle that came to a head in 2008. But the US Department of Justice said late Thursday 9 August that it won’t prosecute the US financial institution for fraud because the “burden of proof” can’t be met.
The company agreed in 2010 to pay “$550 million and reform its business practices to settle SEC charges that Goldman misled investors in a subprime mortgage product just as the US housing market was starting to collapse. In agreeing to the SEC’s largest-ever penalty paid by a Wall Street firm, Goldman also acknowledged that its marketing materials for the subprime product contained incomplete information,” according to a DOJ press release at the time.
Links to other sites: US DOJ, Wall St Journal
