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Goldman warns of more investigations

By David Ellis, staff writer


NEW YORK (CNNMoney.com) -- Goldman Sachs provided a more detailed view of its legal troubles Monday, acknowledging it faces a series of government probes over some of its business dealings.

In its latest quarterly filing, Goldman disclosed that there are investigations from both Britain's Financial Services Authority as well as the independent U.S.-based Financial Industry Regulatory Authority, or FINRA, over the sale of mortgage-related investments.

Wall Street's top investment bank also revealed that it was subject to a number of investigations related to its work with Greece, after helping the now-embattled nation issue debt and conduct other complex financial transactions.

The latest disclosures build on revelations made by the company earlier this month in another regulatory filing.

Goldman said last week it was facing a half-dozen shareholder lawsuits over the now infamous Abacus transaction in 2007. In April. the Securities and Exchange Commission charged Goldman and one of its employees with fraud in the sale of that pool of securities tied to subprime mortgages.

The company reiterated Monday that its various legal troubles would not have "a material adverse effect" on its business, but added it remained vulnerable to additional legal action by shareholders.

One noteworthy addition to Monday's filing was the firm's view on the SEC case. It noted that the SEC's civil lawsuit did pose a threat of affecting its ability to act as a registered broker-dealer and in advising mutual funds.

Nonetheless, Goldman Sachs (GS, Fortune 500) shares gained nearly 3% in morning trading Monday as the broader market rallied on the news of the $1 trillion bailout package for Greece and other troubled European nations. To top of page

Index Last Change % Change
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