Financial regulators in the United States
have accused the investment bank Goldman Sachs
of fraud related to the collapse
of the American housing market in 2007.
The Securities and Exchange Commission
is taking civil action against the bank.
Michelle Fleury sent this report from the floor
of the New York Stock Exchange.
The Securities and Exchange Commission alleges
the bank sold investors a financial product
based on subprime mortgages
that was designed to lose value.
Goldman Sachs has denied the allegations
and says it will defend the firm
and its reputation.
This is the first time
that the US government has explicitly accused
one of Wall Street's premier institutions
of fraud relating to the collapse of the US housing market.