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Concerns of another global economic meltdown are growing after another round of downgrades to some of the world’s top banks. Credit rating agency Fitch has downgraded Goldman Sachs, Barclays, Bank of America, and other prominent financial institutions around the globe. This has lead some to believe that another credit crunch is on the horizon.
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A new report from The Senate Permanent Subcommittee on Investigations has accused Goldman Sachs of misleading investors prior to the credit crisis in 2007. The bank marketed four sets of complex mortgage securities, but failed to provide key information about the risks attached. The report says Goldman misled congress in a testimony given in 2010.
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