Lawmakers Ask SEC To Widen Goldman Probe

Law360, New York (April 19, 2010, 5:50 PM EDT) -- Although the U.S. Securities and Exchange Commission's lawsuit against Goldman Sachs Group Inc. is welcome news, the agency should expand its investigation to determine whether other Goldman securities — particularly those insured by American International Group Inc. — were similarly designed to fail, according to two lawmakers.

In a letter to SEC Chairwoman Mary Schapiro, Reps. Elijah E. Cummings, D-Md., and Peter DeFazio, D-Ore., said the SEC's complaint was based on a single collateralized debt obligation known as Abacus 2007-AC1, but that this was just a...
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