British financial watchdog launches Goldman Sachs probe

20th April 2010, Comments 0 comments

Britain's Financial Services Authority on Tuesday said it was launching a formal investigation into Wall Street giant Goldman Sachs after US fraud charges were filed against the bank last week.

"Following preliminary investigations the FSA has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations," the regulator said in a statement.

The FSA added that it would liaise closely with the US Securities and Exchange Commission (SEC), which last week charged Goldman with fraud over the sale of a type of complex mortgage product blamed for the financial meltdown.

Goldman Sachs earlier denied any wrongdoing following the SEC allegations.

© 2010 AFP

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