The U.S. Justice Department's decision not to prosecute Goldman Sachs for its subprime mortgage trades resulted from either 'weak laws or weak enforcement', the senator who asked for a criminal investigation of the firm said on Friday.
Reuters reports that a day after the department announced its decision, Democratic Senator Carl Levin reiterated in a written statement the criticisms he lodged against Goldman beginning more than two years ago. He called the firm's actions 'deceptive and immoral'.
In the meantime, Bloomberg reports that JPMorgan Chase and Citigroup were among the banks sued by the Federal Deposit Insurance Corp. over $388m in securities sold to Colonial Bank.
The FDIC alleged that the banks misrepresented the quality of the loans underlying residential mortgage-backed securities that Colonial purchased, according to a complaint filed in federal court in Manhattan.
And the news organisation also reports that Sandler O’Neill & Partners, the 24-year-old investment bank that focuses on financial clients, fired about 20 people in units including trading and deal advisory, said people with direct knowledge of the decisions.
Phil Smith, who had been deputy head of global investment banking, will take on the role of chief financial officer at the unit.