SEC Probes Second Goldman CDO: Report

The Securities and Exchange Commission has stepped up its probe into a collateralized debt obligation by Goldman Sachs that wasn't part of the civil fraud charges filed against the firm in April, a report says.
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NEW YORK (

TheStreet

) -- The

Securities and Exchange Commission

has stepped up its examination into a collateralized debt obligation by

Goldman Sachs

(GS) - Get Report

that wasn't part of the

civil fraud charges

filed against the firm in April, the

Financial Times

reports.

The SEC's interest in Hudson Mezzanine Funding, a $2 billion CDO, comes amid settlement talks with Goldman over accusations that the bank defrauded investors in Abacus, a similar CDO, the newspaper reports, citing people close to the matter.

The

Financial Times

reports that in recent weeks the SEC had been gathering information on Hudson Mezzanine, which featured prominently in the grilling of Goldman's executives in the U.S. Senate in April. The SEC and Goldman declined to comment for the

Financial Times

.

People close to the situation said the probe was preliminary and there was no certainty it would lead to additional actions against the Wall Street firm.

-- Written by Joseph Woelfel in New York.

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