Britain's financial regulator started a formal enforcement investigation into Goldman Sachs on Tuesday, four days after U.S. regulators filed a fraud case against Wall Street's biggest investment bank.
"Following preliminary investigations the Financial Services Authority (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," the UK regulator said in a short statement.
The U.S. Securities and Exchange Commission has accused Goldman of hiding from investors the fact that a prominent hedge fund manager was betting against a subprime mortgage product that he helped create.
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