From Bloomberg:
A formal referral from the Senate is “much more than a symbolic gesture” because it would prompt an agency to put the matter “at the top of its list,” said Robert Hillman, a professor at the University of California, Davis, School of Law.
For Goldman Sachs, “the question is how much pain they’re going to have to endure with the public spotlight for these revelations, and that depends in part how long the government’s willing to drag this out,” said James Cox, a securities law professor at Duke University School of Law.
Still, Cox said he is “very skeptical” that the examinations by the agencies will ultimately lead to new claims against Goldman Sachs, which last year paid $550 million to settle SEC claims related to its marketing of the complex securities known as collateralized debt obligations.
Elsehwere, Eric Holder took some time from his busy speculator hunt campaign to answer a question on why the DOJ will do absolutely nothing with this development:
Attorney General Eric Holder, testifying before the House Judiciary Committee today, confirmed that his department is scrutinizing the report. Two people briefed on the matter confirmed that the SEC enforcement division is also studying it.
Holder, in his comments, didn’t offer any specifics though he did single out the New York-based bank in his remarks.
“The department is looking right now at the report prepared by Senator Levin’s subcommittee that deals with Goldman Sachs,” Holder said.
When the report was released, Levin said he wanted the Justice department and the SEC to examine whether Goldman Sachs violated the law by misleading clients who bought CDOs without knowing the firm would benefit if they fell in value.
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