Goldman Sachs was subpoenaed by Manhattan prosecutors seeking details on its conduct during the financial crisis, opening a fresh legal front for a bank facing probes from federal and state officials, people familiar with the matter said.
The Manhattan district attorney’s inquiry follows a US Senate subcommittee report accusing the investment bank of misleading clients when it sold mortgage-linked securities just as the credit markets descended into crisis.
The Senate’s conclusions triggered a wave of investigations into Goldman’s business practices, reigniting concerns that the bank’s legal and regulatory headaches might worsen. Its shares have tumbled by 20 per cent this year.
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