Wealth management

SEC Said to Target Goldman CDO

Published June 11, 2010, 12:00 a.m. EDT

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Updated June 10, 2010, 5:10 p.m. EDT

1 Min Read

Goldman Sachs Group Inc.'s $2 billion Hudson Mezzanine collateralized debt obligation, sold in 2006, is the target of a probe by the Securities and Exchange Commission, according to a person with knowledge of the matter.

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The inquiry into the CDO may not lead to additional actions against the New York securities firm, said the person, who did not want to be identified because the investigation is not public. Michael DuVally, a spokesman for Goldman Sachs, declined to comment, as did SEC spokesman John Nester. Financial Times reported the probe Wednesday.

Goldman Sachs shares have fallen 26% since the SEC filed a fraud lawsuit against the firm on April 16 that related to its 2007 sale of a CDO called Abacus.

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Wealth management

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