Goldman profited during crisis

Wall Street titan Goldman Sachs made huge profits during the financial meltdown through subprime, or higher-risk, mortgage backed securities that have been linked to the origin of the crisis, Senator Carl Levin said on Saturday.

Wall Street titan Goldman Sachs made huge profits during the financial meltdown through subprime, or higher-risk, mortgage backed securities that have been linked to the origin of the crisis, Senator Carl Levin said.

The US Securities and Exchange Commission (SEC) charged Goldman Sachs with fraud earlier this month, sending the company's share price into a tailspin.



"These emails show that, in fact, Goldman made a lot of money by betting against the mortgage market," said Levin in a statement alongside the internal messages that were released ahead of a hearing next week focusing on the role of investment banks in contributing to the crisis.

The SEC accused the Wall Street investment giant of "defrauding investors by mis-stating and omitting key facts" about a product based on subprime securities.

© 2010 AFP
This story is sourced direct from an overseas news agency as an additional service to readers. Spelling follows North American usage, along with foreign currency and measurement units.