February 17, 2010 / 1:24 AM / 10 years ago

Goldman, Greece failed to disclose swap -report

NEW YORK, Feb 16 (Reuters) - Goldman Sachs Group Inc (GS.N) arranged a currency swap for Greece that it failed to disclose and that allowed the country, now facing a debt crisis, to hide the extent of its deficit, Bloomberg reported on Tuesday.

The Wall Street bank managed $15 billion of bond sales for the European country after arranging the swap, Bloomberg reported, citing a review of the prospectuses.

No mention of the swap was made in sales documents for the securities in at least six of the 10 sales Goldman arranged for Greece since the deal, the report said. It added the bank helped Greece raise $1 billion of off-balance-sheet funding in 2002 through the swap.

A Goldman spokesman was not immediately available to comment.

Greece has required a political pledge of support from the European Union as fears over its debt sparked a market attack that has dented the euro and lifted bond yields. [ID:nLDE61F0XT] (Reporting by Jonathan Spicer; Editing by Bernard Orr)

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