Goldman Sachs Served Subpoena Over Credit Crisis
But they probably will escape criminal charges
They expected it weeks ago, but today it's official: Goldman Sachs has been subpoenaed by the Manhattan District Attorney's office in connection with the firms role in the credit crisis. Both Dealbook and Bloomberg independently reported the development, which led to a "choppy" morning for traders at the New York Stock Exchange.
The firm has previously been subpoenaed by an independent commission and unnamed regulators looking into mortgage securities. Now, the Manhattan DA is investigating the firm in connection with a 639-page Senate Permanent Subcommittee on Investigations report alleging that Goldman made "a huge bet against the housing market, misleading investors," reported the The Wall Street Journal.
Despite the inquiry, analysts believe Goldman may emerge unscathed by criminal charges. Dealbook and Bloomberg have both noted variations of this refrain in the Journal: "Subpoenas don't necessarily mean criminal charges against Goldman or individuals at the firm are inevitable or even likely."