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Goldman subpoenaed over role in financial crisis

A television plays at the Goldman Sachs booth on the floor of the New York Stock Exchange during afternoon trading in New York City.

BOB MOON: There's word that Goldman Sachs just got a subpoena. For months, there's been talk that prosecutors in New York could go after Goldman for the investment bank's involvement in the global financial crisis. A couple of weeks ago, the firm's representatives went before the Manhattan DA to explore questions raised in Senator Carl Levin's 635-page report on the matter. And now the subpoena.

More on the significance of this from Marketplace's Gregory Warner.


GREGORY WARNER: Since the financial crisis, Mark Rifkin, a partner at the New York law firm Wolf Haldenstein, has been asking this question...

MARK RIFKIN: Why aren't the banks that the government had to bail out, why aren't they being held accountable to the American public who is paying the price for this collapse?

Today the Manhattan DA issued Goldman Sachs a subpoena. That's a request for information, not a charge. But it probably means the DA is looking into whether Goldman Sachs broke any state or federal laws. It comes six weeks after a report by Senator Carl Levin detailing how the bank knowingly sold toxic investments to pension funds and other clients.

RIFKIN: This could very well be the first of several subpoenas issued to other participants in the financial markets, not just Goldman Sachs.

A spokesman for Goldman Sachs said "subpoena's are a normal part of the information request process and when we receive them we cooperate fully."

I'm Gregory Warner for Marketplace.

About the author

Gregory Warner is a senior reporter covering the economics and business of healthcare for the entire Marketplace portfolio.

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