SEC’s Kotz ‘intends’ to probe timing of Goldman charges

The inspector general of the Securities and Exchange Commission (SEC) said Friday that he will likely investigate the timing of the agency’s civil charges against Goldman Sachs.

The ranking Republican on the House Oversight and Government Reform Committee Darrell Issa (R-Calif.) sent a letter to the inspector general David Kotz earlier Friday questioning the timing of the civil charges against the banking giant in light of the financial reform debate in the Senate.

{mosads}”I have received the letter and do intend to conduct an investigation at the request of Congressman Issa,” Kotz said on Fox News. “We need to understand what led to the decision to announce or bring the case on that day. See if there was any undue influence involved and so we’ll look very carefully to investigate that and see what we determine.”

Kotz response was blasted out to the press by Issa’s office.

Issa and other Republicans have implied that the SEC may have timed the charges to help bolster the chances of financial reform legislation passing, which all Republicans currently oppose. 

Goldman is accused of creating a financial product based on subprime home mortgages that was intended to fail but did not notify clients who purchased it.

Democrats have rejected that sentiment, saying that the SEC is an independent government agency. 

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