Goldman Sachs is under criminal investigation

[pioneer]

Goldman Sachs is under criminal investigation for the way in which it sold complex mortgage-backed products to clients, reports suggest.

Earlier this month, the US financial regulator brought civil charges against the bank for defrauding investors.

It alleged that Goldman failed to disclose a conflict of interest, in that a firm advising it on a product was betting it would decline in value.

Goldman denies the accusations and said it was "not surprised" by the reports.

"Given the recent focus on the firm, we are not surprised by the report of a [criminal] inquiry. We would fully co-operate with any requests for information," a Goldman spokesperson told the AFP news agency.