FSA begins probe into Goldman

Steve Dinneen
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GOLDMAN Sachs will be investigated by the Financial Services Authority (FSA) after the US Securities and Exchange Commission (SEC) accused it of committing a $1bn (£650m) fraud.

An FSA spokesman said: “As you would expect, the FSA is investigating the circumstances of this case and whether there are any implications for the UK-regulated entities of Goldman Sachs.

“If there are, we will take appropriate action. We are working closely with overseas regulators and will co-operate fully with the SEC investigation.”

City A.M. understands a formal enforcement referral has not yet been ordered by the watchdog and the investigation is in its primary stage.

The bond trader at the centre of the landmark case has decided to stay away from the bank’s London offices while the investigation unfolds.

Fabrice Tourre, the self-styled “fabulous Fab”, who is the only Goldman staffer named in the SEC civil lawsuit, is being backed by Goldman, which maintains he has not been implicated in any wrongdoing.

A spokeswoman for the bank said the 31-year-old made a “personal decision to take a bit of time off.”

It is understood Tourre will be in line for a bumper bonus when Goldman announces its remuneration package this morning.