German CSU calls for halt in dealings with Goldman

FRANKFURT (BestGrowthStock) – The Bavarian sister party of German chancellor’s conservatives has called for a temporary halt in business with Goldman Sachs (GS.N: ) while the investment bank deals with charges of fraud.

The general secretary of the Christian Social Union (CSU), Alexander Dobrindt, told German business daily Handelsblatt that as long as investigations were ongoing, dealings with Goldman should be put on hold.

Frank Schaeffler, a financial expert of the business friendly Free Democrats (FDP) which shares power with Merkel’s CDU, said: “We should let business relations with the U.S. bank rest until the charges have been cleared.”

Goldman Sachs Group Inc (GS.N: ) was charged last week with fraud by the U.S. Securities and Exchange Commission in the structuring and marketing of a debt product tied to subprime mortgages.

The SEC alleged that Goldman structured and marketed a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which cost investors more than $1 billion.

(Reporting by Nicola Leske; Editing by Mike Nesbit)

German CSU calls for halt in dealings with Goldman