Goldman Sachs cleared in subprime investigation

AP News
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Posted: Aug 09, 2012 3:43 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 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 and contributing to the financial crisis that crippled the global economy.

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

Goldman reported the SEC's decision in a regulatory filing. It said the SEC notified it on Monday that it wouldn't pursue enforcement action against the bank, but the bank didn't give any more details.