British PM wants Goldman Sachs to be investigated by his country's financial watchdog

April 19, 2010 10:42 am 

LONDON, April 19 — British Prime Minister Gordon Brown said on Sunday he wanted Financial Services Authority (FSA) — Britain's financial watchdog — to investigate Goldman Sachs after it was charged with fraud by U.S. regulators.

"I want a special investigation done into the entanglement of Goldman Sachs and the companies there with other banks and what happened," Brown told BBC television.

"There are hundreds of millions of pounds have been traded here and it looks as if people were misled about what happened. I want the Financial Services Authority (FSA) to investigate it immediately," he said. "We will work with the Securities and Exchange Commission in the United States."

Meanwhile, the UK Financial Services Authority did not make any comment on Brown's speech on Sunday.

The U.S. Securities and Exchange Commission on Friday charged Wall Street investment giant Goldman Sachs with "defrauding investors" over subprime mortgage securities, which were largely blamed for the worst financial crisis since the Great Depression.

The government agency, which is responsible for regulating the financial markets in the country, alleged that Goldman Sachs failed to disclose crucial information to investors of its securities that a major hedge fund had bet against the securities. (PNA/Xinhua) ALM

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