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SEC voted 3-2 to sue Goldman Sachs: sources
April 20, 2010 / 6:55 PM / 8 years ago

SEC voted 3-2 to sue Goldman Sachs: sources

WASHINGTON (Reuters) - The Securities and Exchange Commission voted 3-2 to charge Goldman Sachs with fraud, sources familiar with the matter said on Tuesday.

SEC Chairman Mary Schapiro sided with the two Democratic commissioners, Luis Aguilar and Elisse Walter, in deciding to pursue civil fraud charges against the Wall Street bank, the sources said. The two Republican commissioners, Troy Paredes and Kathleen Casey, dissented.

An SEC spokesman had no comment.

The SEC alleges that Goldman misled investors who bought a mortgage-related instrument by not disclosing that the security was designed to fail. Goldman has denied the allegations.

Reporting by Rachelle Younglai; editing by John Wallace

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