US launches criminal probe into Goldman Sachs

WASHINGTON - US federal prosecutors in New York have begun investigating Goldman Sachs Group Inc, raising the possibility of criminal charges against the company or its employees, a source said.

Goldman, the world's most powerful investment bank, said it was not surprised at the news. "Given the recent focus on the firm, we are not surprised by the report of an inquiry," a Goldman spokesman said. "We would fully cooperate with any requests for information."

The investigation from the Manhattan US Attorney's Office ramps up pressure on Goldman less than two weeks after it was charged by the US Securities and Exchange Commission with civil fraud for allegedly hiding information from investors about a mortgage-related security.