04.16.10
Cantwell Responds to SEC Allegations Against Goldman
WASHINGTON, DC – U.S. Senator Maria Cantwell today issued the following statement in response to the allegations in a Securities and Exchange Commission lawsuit that Goldman Sachs fraudulently packaged and sold collateralized debt obligations that played a major role in the financial meltdown:
“The fraudulent transactions alleged in this SEC complaint epitomize why we need strong financial regulatory reform. Abusive credit default swaps were at the heart of a whole series of practices that led to the worst financial meltdown since the Great Depression. And we paid 100 cents on the dollar to bail them out?? Wall Street, especially the $600 trillion swap market, needs new rules to stop practices that inflicted so much damage on our economy.”
In March 2009 Senators Cantwell and Dorgan wrote to Attorney General Eric Holder calling for creation of a Department of Justice-led interagency economic crimes task force to comprehensively investigate financial fraud underlying the financial crisis. A copy of the letter can be found here. Cantwell said today it is clear from the details laid out in the SEC complaint that a coordinated effort would ensure a thorough investigation of these matters.
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