Washington, D.C. – May 3, 2010 – (RealEstateRama) — Rep. Raúl M. Grijalva today hailed the announcement that the Securities and Exchange Commission (SEC) is referring its Goldman Sachs investigation to the Department of Justice (DOJ) for potential criminal charges. Grijalva signed an April 23 letter to Attorney General Eric Holder asking for DOJ to investigate the company’s activities in connection with the economic crisis.
“The SEC’s limited enforcement capabilities need to be augmented by a full legal investigation, and DOJ’s decision to conduct that investigation is an important step,” Grijalva said. “Goldman Sachs’ behavior over the past several years has come to embody all that went wrong with our economy, and some very hard questions need to be asked and answered. DOJ is the appropriate agency for the job, and I commend them whole-heartedly for taking this step to give the American people confidence in our regulatory system.”
The SEC has been investigating Goldman and one of its employees, Fabrice Tourre, for the potentially fraudulent sale of investments based on the value of home loans that were never meant to be profitable. The agency can levy fines and assess civil penalties but cannot charge any company or individual with a crime.
“The depth of the financial collapse demands a proportionate legal response,” Grijalva said. “Mr. Holder is pursuing that response, and I join the many other people in this country thanking him today for his action on their behalf.”