On the 20th April 2010 the FSA issued a statement on Goldman Sachs International – the short statement stated

Following preliminary investigations the FSA has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations. The FSA will be liaising closely with the SEC in this review.

• http://www.fsa.gov.uk/pages/Library/Communication/Statements/2010/goldman_sachs.shtml

On 18 April 2010, Timesonline.co.uk published an article reporting that the FSA has launched an investigation into the London operations of Goldman Sachs.

• http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7100848.ece

On 16 April 2010, the US Securities and Exchange Commission (SEC) filed a civil action for securities fraud against Goldman Sachs. The SEC has alleged that Goldman Sachs marketed a synthetic collateralised debt obligation (CDO) that hinged on the performance of certain residential mortgage-backed securities (RMBS) but failed to disclose to investors the role taken by a hedge fund, Paulson & Co, in the RMBS selection process, and the fact that Paulson & Co had taken a short position against the CDO.

The Timesonline.co.uk article states that Fabrice Tourre, the Goldman Sachs employee whom the SEC alleges was principally responsible for the CDO in question, has worked at the bank’s London headquarters since late 2008 and that it understands that the FSA is examining trades similar to the CDO referred to in the SEC’s charges.