WASHINGTON (AP) -- A Senate investigation has found Goldman Sachs developed a strategy to profit from the housing meltdown and reaped billions at the expense of clients.
Top Goldman executives misled investors in complex mortgage investments that became toxic, investigators say. They point to e-mails and other Goldman documents obtained in an 18-month investigation.
Goldman argues it didn't profit from the mortgage meltdown that began in 2007. Sen. Carl Levin, D-Mich., head of the Senate Permanent Subcommittee on Investigations, says, "I think they're misleading the country."
The government has accused Goldman of civil fraud, saying it sold mortgage securities without telling buyers that a hedge fund client had helped craft the securities and was betting on them to fail.
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