The Financial Crisis Inquiry Commission isn't satisfied that Goldman Sachs Group (GS) is doing all it can to supply the agency with documents and other information about the bank's role in the credit crisis of 2008. According to the FCIC, Goldman is withholding material that's essential to its investigation.
The commission was established to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." The bipartisan group comprises 10 members, "prominent private citizens with significant experience in banking, market regulation, taxation, finance, economics, housing, and consumer protection," that were appointed by Congress in July 2009.
The FCIC press release doesn't say exactly what Goldman has done to avoid compliance other than "failing to comply with a request for documents and interviews in a timely manner."
This subpeona is one in a long series of problems that the government has had with Goldman, which include Securities and Exchange Commission charges for civil fraud and potential criminal charges by the Department of Justice.
Goldman's share price dipped on the news but quickly recovered to around $141.70 in midday trading. Shares were at $164 in late April, but have since tumbled as more bad news about the bank has hit the market.
Introduction to Preferred Shares
Learn the difference between preferred and common shares.View Course »