Goldman - You Are Not Alone (Prosecutors Now After Everyone)

It seems that Goldman's time out front facing off to the critics may be over, as The New York Times reports that The New York State Attorney General is said to have kicked off an investigation of eight firms, probing whether they provided misleading information to rating agencies in order to obtain better ratings for mortgage-backed security deals.

The firms are said to be: Goldman (of course), Citi, Credit Agricole, Credit Suisse, Deutsche, Merrill Lynch, Morgan Stanley and UBS.

A spokesperson for Goldman (now well schooled in this kind of thing) said: 'Any suggestion that Goldman Sachs improperly influenced rating agencies is without foundation. We relied on the independence of the rating agencies' processes, and the ratings they assigned'.

The Wall Street Journal also reports that a number of firms are now the subject of preliminary probes from US federal prosecutors and securities regulators into their CDO sales practices, and several firms have received subpoenas requesting information.

All this might end up being good news for Goldman Sachs, though, as the firm may well now be able to claim in its defence that it has been accused of doing nothing more than what has been standard industry practise for years.

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