According to Bloomberg, Goldman Sachs Group Inc. won’t face criminal prosecution related to sales of mortgage-linked securities because such a move could threaten the U.S. financial system, according to Brad Hintz, an analyst at Sanford C. Bernstein & Co.
The U.S. Department of Justice, which is reviewing a Senate subcommittee report that alleged Goldman Sachs misled clients before the financial crisis, will avoid jeopardizing the fifth- largest U.S. bank by assets because it’s viewed as “too big to fail,” Hintz wrote in note to clients today.
“If an alleged violation is identified during a Goldman investigation, we expect a reasoned response from the Justice Department,” Hintz wrote. “In a worst case environment, we would expect a ‘too big to fail’ bank such as Goldman to be offered a deferred-prosecution agreement, pay a significant fine and submit to a federal monitor in lieu of a criminal charge.”
Stephen Cohen, a spokesman for New York-based Goldman Sachs, declined to comment on Hintz’s note. Laura Sweeney, a spokeswoman for the Justice Department in Washington, didn’t immediately reply to requests for comment....
Find out more at:
http://www.bloomberg.com/news/2011-06-01/goldman-too-big-to-face-prosecution-over-mortgage-securities-hintz-says.html
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