GOP Rep. Darrell Issa Initiates Investigation Into SEC's Goldman Suit

By: Nancy Cordes
Topics: Republicans ,; Economy ,; Congress

Congressman Darrell Issa, the ranking Republican on the House Oversight Committee, is initiating an investigation into the timing of the Security and Exchange Commission's fraud suit against Wall Street giant Goldman Sachs.

"The events of the past five days have fueled legitimate suspicion on the part of the American people that the Commission has attempted to assist the White House, the Democratic Party, and Congressional Democrats by timing this suit to coincide with the Senate's consideration of financial regulatory legislation," Issa says.

Issa's staff tells CBS News that they currently have no hard evidence that the SEC violated federal law by colluding with the White House. But they argue the timeline and the circumstances are fishy, and they point to two things in particular: the announcement of the fraud suit the week before Democrats planned to bring their financial reform bill to the Senate floor, and the amazing speed with which Organizing for America managed to purchase a Google ad directing people who typed "Goldman Sachs SEC" on Google to donate money at my.barackobama.com once the news broke on the New York Times website.

Issa's office is not going so far as to make an accusation of impropriety at this point. But they are requesting a raft of documents from the SEC - including "all known communications" between SEC employees and the Executive Office of the President, the Democratic National Committee, the DNC group Organizing for America, or the New York Times. They say if they don't get the documents they want from the SEC, there are "many avenues to pursue," including subpoenas.

This morning, CBS News caught up with SEC Chairman Mary Shapiro as she was departing a House Financial Services Committee hearing on Lehman Brothers' bankruptcy. We asked her if there was any political pressure put on the SEC to bring this suit against Goldman Sachs.

Her response, as she walked away: "Absolutely not."

More on Goldman Sachs and Financial Reform:

Goldman Sachs Hires Ex-White House Counsel
SEC vs. Goldman: A Matter of "Material"
Goldman Earns $3.3B In 1Q As Fraud Case Looms
Goldman Suit No "Slam Dunk" For SEC
Spitzer: SEC will Likely win Case against Goldman Sachs
Goldman CEO: We'll Defend our Reputation
Goldman and SEC: Why No Settlement?
Goldman Sachs Faces Backlash in Europe, Too
Analysts Bullish on Goldman, Despite Charges
Goldman Charges May Spur Finance Reform
GOP Decries "Partisan" Financial Reform Bill

Nancy Cordes is CBS News' Congressional Correspondent.

Nancy Cordes
Nancy Cordes is CBS News' congressional correspondent.
Follow on Twitter »

14 Comments Have Your Say
Email Story Send to a Friend
Share This Tell Your Friends
Tweet This Tweet This
More Share It

Add a Comment

See all 14 Comments


by nmrosey13 April 22, 2010 5:44 AM EDT: DARYL ISSA SHOULD BE INVESTIGATED. HE DEFENDS THE BANKSTERS & ATTACKS THE SEC.
CHECK HIS ARABIC TIES. IN HIS MIND IT'S OK TO BAIL OUT THE CROOKS AT THE EXPENCE OF THE TAX PAYER. THINK ABOUT THE MILLIONS OF JOBS LOST & HOME FORECLOSURES THEY ARE RESPONSIBLE FOR. GOLDMAN SACKS WAS SHORTING THE DERIVATIVES. HE THINKS IT'S OK FOR THE TAX PAYER TO COVER THE LOSSES OF THE CROOKS & IT'S OK FOR THEM TO KEEP THEIR PROFITS. BESIDES KEEPING A CHAIR WARM IN THE CONGRESS WHAT DOES DARYL DO. HE JUST MADE A FOOL OF HIMSELF.
THAT TAKES NERVE. HE'S SO LOYAL TO THE RNC.; Reply to this comment


by koko98-2009 April 21, 2010 2:11 PM EDT: The richest guy in Congress is defending greedy wall street bankers. So what else is new.; Reply to this comment


by wfw3536 April 21, 2010 11:19 AM EDT: It is about time we look into this cover up. I am disappoint in this administration for their efforts to try to keep this hidden from the public. I thought we voted for all of this transparency? Another broken campaign promise.; Reply to this comment


by actornaught April 21, 2010 9:52 AM EDT: And for more "information" on this and other ginned up non-issues, tune into your Phony OutRage Network, Focks to you!; Reply to this comment

by ThomasJeffersonLives April 21, 2010 1:29 AM EDT

The Liberal Democrats have no more agenda than to prove the Capitalist system takes advantage of Americans. Remember the Liberal agenda is to seek power at the advantage of the average, populist American. When the capitalist systems seems to turn against you, the Democrats want to take advantage and pull your loyalty to them. REMEMBER: independence equals loyalty - your loyality to none other than your self and your country!

Reply to this comment


by pasmalltown April 21, 2010 6:34 AM EDT: Spoken like at "true" Wall Streeter..........
"REMEMBER: independence equals loyalty - your loyality to none other than your self and your country!" You forgot to add and YOUR OWN pocketbook.........................


by nmrosey13 April 22, 2010 5:30 AM EDT: YOU MUST BE SOME RICH FOOL. REAGAN & BUSH BOTH DID IT TO YOU. SUCKER


by brianbwb2011 April 20, 2010 9:53 PM EDT: Result matters, motivation does not.

If Goldman is found at fault, and actions are taken to correct the rules so they are not able to repeat the mistake, to the benefit of taxpayers and investors, then who cares what the motivation is?

What is more suspect, to my eye at least, is the motivation of the GOP probe, perhaps they should also be investigated.; Reply to this comment


by nearl451 April 20, 2010 6:56 PM EDT: Not very smart, but obstructionist..and...as expected. Not content that Goldman promoting in the front store what it was hedging in the back store was, if not illegal, but immoral, Issa is only satisfied by obstructing ANY regulation on them, personally.

Hey if you want the public against you; take Wall Street's side, by all means.; Reply to this comment


by akwriter April 20, 2010 6:54 PM EDT: LOoks like GOP Rep. Darrell Issa wants to derail the SEC fraud charges of Goldman Sachs. He must have stock in the company, or he was told to do it by his party leaders....the same people who met with bank executives a week or so ago.; Reply to this comment


by mikelpond April 20, 2010 6:30 PM EDT: Don't be suprised if any info Issa gets "slips" into the hands of Goldman-Sachs.; Reply to this comment


by lakota2012 April 20, 2010 5:45 PM EDT: Hmmmmm.....seems like FAUX NoNooz propaganda is fueling the suspicion, since we already know that Goldman Sachs was bundling toxic mortgages to sell to their investors as AAA rated, while betting against them in the derivative market.; Reply to this comment