US will not prosecute Goldman Sachs, employees for Abacus deal

Reuters Middle East

WASHINGTON, Aug 9 (Reuters) - Neither Goldman Sachs Group

Inc nor its employees will face U.S. criminal charges

related to trades they made during the financial crisis that

were highlighted in a 2011 U.S. Senate report, the Justice

Department said on Thursday.

The unusual announcement not to prosecute criminally came in

an unsigned statement attributed to the department.

Few expected the bank to face criminal charges, but in April

2011, U.S. Senator Carl Levin asked for a criminal investigation

after the subcommittee he leads spent years looking into

Goldman.

Levin's subcommittee held televised hearings as part of its

inquiry, which centered on a subprime mortgage product known as

Abacus. He said Goldman misled Congress and investors.

Goldman employee Fabrice Tourre still faces a civil

complaint from the U.S. Securities and Exchange Commission. He

has denied any wrongdoing and was the only person accused.

Goldman itself settled with the SEC for $550 million in July

2010 without admitting wrongdoing.

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