WSJ: Federal Criminal Probe Looks Into Goldman Trading

Federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group or its employees -- four pictured here testifying before Congress -- committed securities fraud in connection with its mortgage trading, according to The Wall Street Journal.Federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group (GS) or its employees committed securities fraud in connection with the trading of mortgage-backed securities, according to The Wall Street Journal.

The Manhattan U.S. Attorney's Office is heading the preliminary investigation, which stems from a referral from the Securities and Exchange Commission, The Journal reports. To date, the only charges against the Wall Street investment bank have been civil securities-fraud charges filed by the SEC against Goldman and one trader in its mortgage trading group.

The firm and the trader have both denied any wrongdoing and are fighting the civil charges by the SEC.

The Journal notes that "Many criminal investigations are launched without the government filing charges," and prosecutors haven't determined yet whether they'll bring criminal charges in this instance.

For the full story, see Criminal Probe Looks Into Goldman Trading.

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