Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Search for Jobs

Index Last Change % Change
Dow 19,756.85 142.04 0.72%
Nasdaq 5,444.50 27.14 0.50%
S&P 500 2,259.53 13.34 0.59%
Treasuries 2.46 0.08 3.23%
Data as of 9:53pm ET
Company Price Change % Change
Bank of America Corp... 23.09 0.14 0.61%
Ford Motor Co 13.17 0.14 1.07%
Chesapeake Energy Co... 7.72 0.12 1.58%
Twenty-First Century... 28.21 -0.43 -1.50%
Apple Inc 113.95 1.83 1.63%
Data as of Dec 9
Sponsors

Sections

Even Carl Icahn, one of President-elect Donald Trump's biggest cheerleaders on Wall Street, thinks the post-election exuberance in the stock market has gotten a bit out of hand. More

Republican leaders keep saying Obamacare is hurting the economy and killing jobs, but there's scant evidence for it. In fact, a number of studies show that the economy has been growing. More

Some of the hottest products of the year cost well under $100, from gaming consoles and VR headsets to drones. More

The Los Angeles city attorney is suing four major retailers over claims that they deliberately inflated the original price on some items that misled customers into thinking they were getting a better deal. More