Regulation Fair Disclosure

Goldman and other big banks are not out of the woods

August 10, 2012: 2:01 PM ET

The lack of accountability during the financial crisis, which was a tear in the faith in governmental and banking institutions, is turning into a giant rip that may never be repaired.

FORTUNE -- Goldman Sachs has come into a run of luck -- or so it seems.

The SEC has dropped its investigation into the bank's disclosures related to the sale of subprime mortgages. And the DOJ has dropped its criminal probe into allegations stemming from a 635-page Congressional report that described how Goldman profited by betting against clients and appeared to have misled customers.

And while Goldman (GS) itself appears to be off the hook, Manhattan prosecutors are going after one of its former employees, who allegedly copied Goldman programs before leaving the firm. The defense has raised concerns that this prosecution may be violating the fifth amendment of the constitution since the former employee had already served time for the matter before his federal conviction was overturned, the New York Times reported.

David Wells, a Goldman spokesperson, declined to comment to news outlets on the SEC decision to drop its investigation, but regarding the DOJ decision to drop the criminal investigation, he reportedly told reporters, "We are pleased that this matter is behind us."

MORE: Citi's odd foreclosure rental program

While the heat has been on banks like J.P. Morgan (JPM), Barclays (BCS), and Standard Chartered, Goldman has gotten a bit of a pass for the past few months. But here it is, front and center once more -- and  despite its spokesman's statement, it is not clear that Goldman will ever be able, in full measure, to put these matters behind it. More

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