Heinrich Seeks To Restore Integrity Of Our Nation's Financial System; Calls For Accountability From Goldman Sachs For Role In Financial Crisis

Press Release

In light of the Securities and Exchange Commission's (SEC) civil fraud complaint against Goldman Sachs, U.S. Representative Martin Heinrich (NM-1) sent a letter to U.S. Attorney General Eric Holder urging the Department of Justice (DOJ) to pursue a criminal investigation of Goldman Sachs, if it is not already doing so. The SEC is limited in authority to only civil actions, whereas DOJ has the power to file criminal actions against those who commit financial fraud.

The letter to Attorney General Holder states:

"We in Congress stand ready to support you in protecting the American taxpayers from financial crimes such as the fraud that the U.S. Securities and Exchange Commission has charged Goldman Sachs with committing. We ask that you take up this case, and others, to pursue justice for the American people, to put criminals in jail, and seek to restore the integrity of our nation's financial system."

Additionally, Rep. Heinrich sent a letter to Chairwoman Mary Schapiro of the U.S. Securities and Exchange Commission asking that the SEC recover from Goldman Sachs any payments from AIG related to fraudulent collateralized debt obligations (CDO) sales.

The letter to Chairwoman Schapiro states:

"The SEC announcement of civil securities fraud charges against Goldman Sachs and Fabrice Tourre is welcome news to both investors and the taxpayers who bailed out Wall Street. The failure of the Bush administration to enforce these laws ultimately undermined the financial markets and contributed to the economic turmoil of the last three years."

Today, the Senate Permanent Subcommittee on Investigations is examining the role that Goldman Sachs played in the financial crisis. Click here for more information on the series of subcommittee hearings, and for a list of witnesses and their testimony.

Rep. Heinrich said in an email to constituents today:

"We know that when banks on Wall Street fail, it doesn't just affect a few wealthy investors. It means small business owners in Valencia County can't get a loan. It means homeowners in Moriarty owe more on their home than it is worth. It means seniors in Albuquerque who have worked honestly all their lives can't retire because their retirement accounts have been drained.

"Republicans in the House and Senate threaten to take us back to the failed policies that created this crisis--siding with the special interest groups like Wall Street banks and credit card companies. These Bush economic and fiscal policies brought us the worst financial crisis since the Great Depression.

"It is the responsibility of Congress to protect people on Main Street from the irresponsibility of a few on Wall Street. That is a responsibility I embraced when I voted for the Wall Street Reform and Consumer Protection Act last year, and I encourage the Senate to do the same."

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