SEC IG to look into timing of Goldman Sachs charges

The inspector general of the Securities and Exchange Commission will investigate the timing of the announcement of the SEC's case against Goldman Sachs. The SEC announced the fraud charges April 16, claiming that the Goldman Sachs Group Inc. committed fraud in structuring and selling a collateralized debt obligation, "We do intend to conduct an investigation at the request of Congressman [Darrell] Issa [R-Calif.]," Mr. Kotz told Fox Business News on Friday. In a letter sent Friday to Mr. Kotz, Mr. Issa asked for the inquiry. The timing of the announcement coincided with various Democratic attempts to push for passage of pending reform legislation in the Senate, Mr. Issa wrote, and "fueled suspicion that the Commission … may have engaged in unauthorized disclosure or discussion of Commission proceedings in order to affect the debate over financial regulatory legislation currently pending" before the Senate. Mr. Issa is ranking member of the House Committee on Oversight and Government Reform. "We have to understand what led to the decision to announce or bring the case on that day to see if there was any undue influence involved," Mr. Kotz told Fox Business News.