NEW YORK (CNNMoney) -- A Senate panel issued a scathing report Wednesday that describes Goldman Sachs as a "case study" of the recklessness and greed on Wall Street that set off the 2008 financial crisis.
The 600-page report also blames the lending practices of big commercial banks, such as the now-defunct Washington Mutual, for plunging the U.S. economy into a painful recession.
The regulators who failed to crack down on the banks, including the Office of Thrift Supervision, are faulted for their cozy relationship with Wall Street, as are the major credit rating agencies, Moody's and Standard & Poor's.
"Our investigation found a financial snake pit rife with greed, conflicts of interest, and wrongdoing," said Senator Carl Levin, chairman of the Senate subcommittee charged with investigating the causes of the financial crisis.
The subcommittee, which spent two years on the investigation, based its report on thousands of internal company documents and emails, as well as hundreds of interviews and Congressional testimony.
The subcommittee singled out Goldman (GS, Fortune 500) and Deutsche Bank (DB) as examples of Wall Street firms that reaped huge profits by marketing securities backed by subprime mortgages as safe investments to clients, even as the banks bet against these very same securities.
Goldman paid a record $550 million fine to the Securities and Exchange Commission in July to settle charges it misled investors in the 2007 sale of a collateralized debt obligation, or CDO, known as Abacus.
In addition to Abacus, the subcommittee outlined three other CDOs where it says Goldman had conflicts of interest.
According to the report, Goldman told investors in a CDO called Hudson that its interests were "aligned" with those of the investors. However, the report said Goldman held 100% of the short side of the CDO and had "adverse interests to the investors."
Goldman also told investors that Hudson's assets were "sourced from the Street," suggesting the underlying bonds were picked by outside investors. However, Goldman had selected and priced the assets without any third-party involvement, the report said.
"Goldman is still hiding the fact that they were the beneficiaries of the failure of the Hudson CDO," said Levin.
"While we disagree with many of the conclusions of the report, we take seriously the issues explored by the Subcommittee," Goldman said in a statement. The bank said it has reviewed its business practices and is "committed to making significant changes that will strengthen relationships with clients," and improve transparency and disclosure.
Senator Levin said he plans to refer potential cases of conflict of interest to the Justice Department and the Securities and Exchange Commission, adding that he believes the SEC has been "slow to act."
"In my opinion, they (Goldman) clearly misled their clients and they misled the Congress," Levin added.
The report echoes some conclusions reached by the Financial Crisis Inquiry Commission, which was split along party lines and released two competing reports on the causes of the crisis in January.
Baltimore Orioles executive John Angelos said he would want President Trump to apologize for all the offensive comments he's made before he's invited to throw out the first pitch at Camden Yards. More
On China, Europe and Mexico, Trump is contradicting himself and senior members of his team. More
A new bug was found to be leaking information from hundreds of thousands of websites, but it doesn't appear anyone has exploited it yet. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
New York Republicans want to make sure students at private colleges get more help paying for college, too. More