Lawyers in the United States were predicting a wave of legal action last night in the wake of the $1bn fraud charge brought against Goldman Sachs by the US Securities and Exchange Commission.
Richard Blumenthal, the Connecticut attorney-general, said that he had begun a review of the case, The Times reports. "A key question is whether this is an isolated incident or part of a pattern of investment banks colluding with hedge funds to purposely tank securities they created and sold to unwitting investors." At the weekend, lawyers were hunting for investors who lost money on Goldman's Abacus products to join a potential action against the bank. Keller Rohrback, a class action firm, said: "We are investigating other synthetic collateralised debt obligations marketed by Gold...
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