Regulators in Germany and the UK are considering whether to take legal action against New York based investment bank Goldman Sachs after it was charged with fraud by the US Securities and Exchange Commission.
The SEC is investigating if deals arranged by other banks may have misled investors and has reportedly asked for information from Deutsche Bank, UBS, Barclays and Credit Suisse.
On Friday the Goldman news hammered share prices – particularly of banks – on both sides of the Atlantic, but market strategist Josh Raymond said things calmed down on Monday: “What we have seen from the last hour of trading on Friday was risk aversion continuing. So this morning (Monday)we were lower but not by too much, so that does help to calm a little bit the fears that started from last Friday.”
The charges against Goldman Sachs were perfectly timed from the White House point of view.
President Obama has been meeting members of Congress pushing them to the pass a financial reform bill that he believes would curb the excesses of the big banks.
Following the charges, Goldman Sachs denied any wrongdoing and said they were “completely unfounded.”
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