Fed probing Goldman trades with Greece
WASHINGTON (CNNMoney.com) -- The Federal Reserve is looking into what role Goldman Sachs and other Wall Street firms may have played in Greece's debt problems, Fed Chairman Ben Bernanke said Thursday.
"We are looking into a number of questions related to Goldman Sachs and other companies and their derivatives arrangements with Greece," Bernanke said.
Bernanke's response was to a question posed by Senate Banking chief Christopher Dodd, D-Conn., who asked about U.S. financial banks and hedge funds that are making financial bets that the Greek government will default on its loans.
Goldman Sachs (GS, Fortune 500) and other banks have been in the news over reports they secretly helped raise $1 billion in credit for Greece, in a way that was off the balance sheet and helped hide Greece's big debt woes from European Union regulators.
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