Levin: There Is ‘Another Big Shoe to Drop on Goldman’
On Friday, the Securities and Exchange Commission made a bombshell announcement: It is charging Wall Street giant Goldman Sachs with civil fraud for failing to reveal to clients that a hedge fund shorting the housing market had engineered the product they were purchasing to fail.
It seems that might not be the only allegation the bank will have to deal with. Michael Hirsch at Newsweek reports that Sen. Carl Levin (D-Mich.), who heads the Permanent Subcommittee on Investigations, believes there is “another big shoe to drop on Goldman,” without specifying any more details. The panel has been investigating investment banks’ role in the boom and bust in detail, and is due to hold hearings with Goldman executives next week. The unnamed source in Hirsch’s article says Levin plans to reveal the nature of the allegations as soon as tomorrow.