Skelton calls for expanding investigation of Goldman Sachs

The following news release was issued Friday by Fourth District Congressman Ike Skelton:

In a letter to SEC Chairwoman Mary Schapiro, Congressman Ike Skelton (D-Mo.) joined 29 Congressional colleagues in calling for an expanded Securities and Exchange Commission (SEC) investigation into the activities of Goldman Sachs and any fraudulently obtained taxpayer dollars the Wall Street firm may have received. In a statement about the letter, Congressman Skelton said:

"I am pleased that the SEC is finally working to crack down on Wall Street misdeeds. The allegations of fraud by employees at Goldman Sachs are troubling and highlight the 'get rich at all costs' mentality that permeates Wall Street and helped to create the recent economic crash.

"It is clear that the values of responsible, hardworking Missourians are not shared by the Wall Street bankers whose tricks almost destroyed the American economy. In fact, only the sacrifices of taxpayers prevented the complete collapse of our financial markets. That is why the SEC needs to be very thorough in its investigation and recover any federal tax dollars that may have been involved in the alleged illegal actions of Goldman Sachs."

The SEC has filed a civil complaint against Goldman Sachs relating to allegedly fraudulent credit default swaps. Insurance company AIG, which insured Goldman’s transactions, transferred $12.9 billion to Goldman Sachs to cover losses associated with Goldman's bets. Given the taxpayer support to keep AIG from collapsing the nation's financial system, it is imperative that the SEC pursue whether Goldman received reimbursements from the taxpayer through AIG.