Senate chairman says Goldman Sachs 'misled' clients and Congress

The chairman of a bipartisan Senate panel investigating the financial crisis says Goldman Sachs "misled" their clients and the Congress and called the tactics used by the Wall Street firm in its handling of subprime mortgages "disgraceful."

The panel concluded after a two-year probe that Goldman Sachs Group Inc. profited from the crisis by betting billions against the subprime market, then deceived investors and Congress about its conduct.

Sen. Carl Levin, D-Mich., says some of the findings in the 635-page report by the Senate's Permanent Subcommittee on Investigations will be referred to the Justice Department and the SEC for possible criminal or civil action.

Asked if he was disappointed that no Wall Street figures had been jailed in connection with the crisis, Levin responded, "There's still time," the Times reports.

Read full subcommittee report here.

"In my judgment, Goldman clearly misled their clients and they misled the Congress," Levin told reporters before the report was issued Wednesday, the Los Angeles Times reports.

Levin said the panel has found new evidence that shows Goldman's misleading of investors went beyond that one case. The report also charges that Goldman CEO Lloyd Blankfein and other executives misled the panel when it testified last April.

"Goldman was, I think, the only major bank that did well during the recession. We tried to find out, 'How is it they did well?' "Levin said. "The tactics that they used

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