Goldman Sachs Subpoenaed by Manhattan DA, Shares Fall
Thursday, June 02, 2021 12:30 PM

Goldman Sachs Group Inc. (NYSE: GS) received a subpoena from Manhattan District Attorney’s office as part of an investigation of into the mortgage crisis. After the report shares of Goldman Sachs fell 1.74 percent to $133.80, an 11-month low, making it the worst-performing large-cap financial stock in the Standard & Poor’s 500 Index, which fell 0.40 percent to 1,309.26 on Thursday.

Goldman Sachs today received a subpoena from New York prosecutors seeking information on the investment bank's actions leading into the global financial crisis, a person familiar with the matter said. The Subpoena from Manhattan DA Cyrus Vance is the latest blow for the largest U.S. investment bank, which is reinventing itself as new U.S. financial regulations cut into some of its key businesses.

In addition to the recent event, the New York subpoena, the US Department of Justice is also likely to subpoena the bank, as reported by the Wall Street Journal earlier today. In both cases, prosecutors are seeking to learn more about facts unearthed by a U.S. Senate subcommittee report about Wall Street's role in the housing market collapse.

According to the report, Goldman Sachs offloaded much of its subprime mortgage exposure to unsuspecting clients just before the market was starting to fall apart.

Goldman said in a statement, "We don't comment on specific regulatory or legal issues, but subpoenas are a normal part of the information request process and, of course, when we receive them we cooperate fully."