New York Post says Goldman Sachs among firms under investigation
Goldman Sachs is cooperating into a probe on rigging Treasury auctions. They are also being investigated for price-rigging in the secondary market.
The New York Post reported yesterday:
"Investigators in the fraud division of the Justice Department have obtained chats and e-mails from Goldman that appear to implicate the company in manipulating the price of Treasury bonds, according to two sources familiar with the investigation."
Investigators have been seeking emails and chat logs.
"Traders are thought to have rigged the market in two possible ways: by agreeing beforehand to keep bond prices higher than normal in order to boost profits in other positions that depend on higher rates, similar to how banks rigged the London-based Libor rate," the Post reports.
"Banks also could have colluded to keep prices lower than normal to sell them at a higher price - and score a bigger spread - to their clients, who agreed to pay a fixed amount beforehand."
As usual, Goldman will agree to pay the fines. Someone will take the fall and it will be business as usual.
