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FSA investigates Goldman Sachs

The Financial Services Authority has announced it is to commence a formal enforcement investigation into Goldman Sachs International, in relation to the recent Securities and Exchange Commission allegations.

In a statement issued this morning, the FSA says it will be liaising closely with the SEC in this review. The announcement follows yesterday’s call by Gordon Brown, the prime minister, for the regulator to start an inquiry in co-operation with the SEC into the bank. It is a charge that Goldmans denies.

Meanwhile, following yesterday’s falls, Asian stocks rebounded today after American regulators seemed split on suing Goldmans.

According to Bloomberg, at 4.15pm in Tokyo the MSCI Asia Pacific index rose 0.5 per cent to 126.51, following yesterday’s decline of 2.1 per cent.  This represented the biggest slump in the index for two months.

Bloomberg reports that banking shares in both America and Asia rose following a news report in which it was revealed that the SEC voted three-to-two to sue Goldmans for fraud.

Hong Kong’s Hang Seng index rose 0.9 per cent following a fall of 2.4 per cent yesterday, while South Korea’s Kospi index increased 0.8 per cent after yesterday’s fall of 1.7 per cent. For both indices today’s gain was the first time they had risen for three days.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. John Szymanowski 20th April 2010 at 11:20 am

    This investigation by the Fine Slapping Authority smacks of political interference which is part of Labour’s bread and circuses policy.First we had Ed Balls deliberately trying to ‘sex up’ the report into Sharon Shoesmith and the Baby P case.Now we have the ‘moral compass’ of Gordon Brown trying to put the boot into Goldman when the CIVIL case hasn’t even gone to court.I thought Fraud is a criminal case?
    Anyone and everyone in the the financial services industry knows that the SEC’s case against Goldman is desperately weak- (see the FT’s reports into this).
    Funny how after 2 years and 8m pages of documentation ,Obama’s ‘Metal’ Mary Shapiro has decided to go public and issue a Wells notice only now??????????

  2. Another example of shutting the door after the horse has bolted. With the size of the FSA in terms of enforcement staff I would expect them to regulate not wait until the problems have happened

  3. Firstly the Treasury instructed the FSA to lay off the banks (admitted by Adair Turner), hence the current state of the public finances, and now the FSA intends launching a formal investigation as a result of pressure applied by Crash Gordon.

    Yet despite all this incontrovertible evidence, Hector Sants has stated on national TV that the FSA is completely independent of government.

    How so?

  4. GS must be quaking in their boots at the thought of being pursued by Fine Slappers Anonymous.
    I feel sorry for Warren Buffett – he might not last to see the end of this one.

  5. The lack of comment probably sums up how Slap drunk we have all become with all the farse from the current government anbd it’s quango’s.
    What’s even more sad however is that most of the people that vote Labour neither understand nor care about all this, it’s in another Universe, and anyone out there that does understand this and still intends to vote Labour belongs in the asylum.

  6. Not wishing to prejudice any findings (as if anybody cares what I say!). But if there was a bloke standing over a dead body with a smoking gun in one hand, a dagger in his other, bottle of poison in his pocket and a wild otherworldly look in his eye I reckon the FSA would manage to figure out that something may be amiss. Otherwise they’d be oblivious.

  7. Re STEVO {4-11pm]

    What you meant to say was, if there was a BANKER standing over a dead body, etc … … the FSA would still manage to (a) let him flee the scene scot-free (b) THEN arrest an IFA for the ‘deed’ … …

    .. or rather arrest anyone that Crash/Ed instructs … so that they look good in the public eye …

    😉 (tic)

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