No 'viable basis' to prosecute Goldman, Justice Department says
August 10, 2012 -- Updated 1113 GMT (1913 HKT)
Photo of Goldman Sachs on Wall Street.
- A Senate subcommittee spent two years on an investigation
- The Justice Department says it conducted an exhaustive review of the congressional report
- The department determines there is no basis for criminal prosecution
- A Goldman Sachs spokesman says "We are pleased that this matter is behind us"
(CNN) -- The Justice Department says after a "careful review" it has determined there is no basis for bringing a criminal prosecution against Goldman Sachs or its employees in regard to allegations set forth in a congressional report.
In an unsigned statement from the Justice Department issued Thursday night, it said the department conducted an exhaustive review for more than a year examining allegations in the Levin-Coburn Report.
Headed by Sen. Carl Levin, D-Michigan, and Sen. Tom Coburn, R-Oklahoma, the 635-page report in 2011 singled out Goldman and Deutsche Bank as examples of Wall Street firms that reaped huge profits by marketing securities backed by subprime mortgages as safe investments to clients, even as the banks bet against these very same securities.
"In my judgment, Goldman clearly misled their clients and they misled Congress," Levin told reporters on a conference call in April 2011.
Goldman Sachs as creepy as we think?
The Senate subcommittee, which spent two years on the investigation, based its report on thousands of internal company documents and e-mails, as well as hundreds of interviews and congressional testimony.
While the department concluded that the burden of proof for a prosecution could not be met, "(it) commend(s) the hard work of those involved in preparing the report and thank the Senate's Permanent Subcomittee on Investigations for its cooperation in regard to the criminal investigation."
Goldman Sachs spokesman David Wells said in a statement, "We are pleased that this matter is behind us."
CNN's Terry Frieden contributed to this report.
Part of complete coverage on
August 19, 2012 -- Updated 0252 GMT (1052 HKT)
A British parliamentary report slammed Barclays bank on Saturday for its "disgraceful" actions that led to a rate-rigging scandal.
August 16, 2012 -- Updated 1202 GMT (2002 HKT)
Standard Chartered is far from the only bank to be implicated in illegal transactions with sanctioned nations.
July 12, 2012 -- Updated 1350 GMT (2150 HKT)
Barclays has been in the spotlight recently, but the rate-fixing scandal which lost its boss his job looks set to reach far further afield.
July 4, 2012 -- Updated 2118 GMT (0518 HKT)
CNN's Richard Quest talks to Lord Levene about the Barclays scandal. Levene says London's culture of money must change.
Read texts and emails between Barclays traders about their often successful attempts to manipulate global benchmarks for interest rates.
July 3, 2012 -- Updated 2107 GMT (0507 HKT)
There are many pieces to the global banking scandal. CNN's Richard Quest explains how they all fit together.
July 5, 2012 -- Updated 1731 GMT (0131 HKT)
Richard Quest says the Libor scandal has confirmed what many of us already knew: There is something smelly in the London financial world.
July 3, 2012 -- Updated 1147 GMT (1947 HKT)
Stephen Hester writes an open letter about the banking crisis, and why, although we may be angry with the sector, we can't give up on banks.
July 2, 2012 -- Updated 2305 GMT (0705 HKT)
CNN's Richard Quest breaks down the LIBOR and explains how this benchmark rate affects the banking system.
Today's five most popular stories