US government accuses Goldman Sachs of fraud

Wall Street powerhouse Goldman Sachs was today accused of defrauding investors by the US government.

The Securities and Exchange Commission announced civil fraud charges against the company and one of its vice presidents.

It alleges that the company marketed complex sub-prime mortgage securities and failed to disclose to investors that a major hedge fund had bet against the securities.

Goldman Sachs shares fell 7.4% on the news.