Goldman Sachs cleared in subprime investigation

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Associated Press

Posted on August 9, 2012 at 4:00 PM

Updated Thursday, Aug 9 at 4:01 PM

NEW YORK (AP) — The Securities and Exchange Commission has decided not to file charges against Goldman Sachs over a $1.3 billion subprime mortgage portfolio.

The SEC's decision, which Goldman reported in a regulatory filing, is a coup for Goldman, which has paid fines after other mortgage-related investigations.

Goldman and other banks packaged risky mortgages into securities to sell to investors in the run-up to the financial crisis. They've been accused of misleading investors about the risks.

The SEC had notified Goldman in February that it was looking into the bank's disclosures about this mortgage portfolio, which the bank created in 2006. Other media outlets reported that it was known as the Fremont mortgage portfolio.

Goldman didn't give details except to say the SEC notified it on Monday that it wouldn't pursue enforcement action.

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