Probe into Greek deal claims

US regulators are investigating how Wall Street firms like Goldman Sachs helped debt-stricken Greece arrange derivatives deals that critics say were used to disguise the size of its budget deficits.

By The Newsroom

Published 2nd Mar 2010, 12:50 BST

Updated 2nd Mar 2010, 12:50 BST

"We are looking into a number of questions related to Goldman Sachs and other companies in their derivatives arrangements with Greece," Federal Reserve Chairman Ben Bernanke told a Senate committee last week,

The US Securities and Exchange Commission also is "interested" in Wall Street's activities in helping Greece do derivatives deals, he said.

The US central bank, which regulates bank holding companies such as Goldman Sachs, is still in a fact-finding mode, checking Wall Street firms that have the sophistication to handle derivatives deals like the one with Greece.

Goldman Sachs managing director Gerald Corrigan said last week that there was "nothing inappropriate" in the deals his firm arranged.

The SEC would not confirm or deny it was investigating Goldman's role in helping Greece, but indicated it had concerns about the potential affect of derivatives deals.

Greece