Source: Goldman Sachs subpoenaed

Published June 2, 2011 4:00am ET



NEW YORK — Goldman Sachs Group Inc. was subpoenaed by the Manhattan District Attorney’s office over the investment bank’s activities leading up to the financial crisis, a person familiar with the matter told The Associated Press. Shares of Goldman fell nearly 2 percent to $133.88 a share after Bloomberg News reported earlier Thursday that the bank had been subpoenaed. The stock ended the day down 1.3 percent at $134.38 a share. Goldman’s shares are down 20 percent so far this year and are at levels not seen since last July.

Goldman has been watched by lawmakers and regulators since marketing risky investments that bet on the housing market’s success just before the mortgage meltdown. Simultaneously the bank reaped billions of dollars from its own bets that the housing market would collapse. Those gains have also made it the target of intense media scrutiny and public outrage.

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