MercoPress. South Atlantic News Agency

Goldman Sachs earnings double; UK launches formal probe into fraud allegations

Last Friday Goldman was formally accused by the US Securities and Exchange Committee

Goldman Sachs Group Inc said first-quarter earnings nearly doubled, while in London Britain's financial regulator launched a formal probe related to civil fraud allegations against the Wall Street bank.

Goldman's results came four days after the firm was accused of fraud by the US Securities and Exchange Commission in the structuring and marketing of a debt product tied to sub-prime mortgages.

Goldman said net income rose to 3.29 billion, or 5.59 per share, from 1.66 billion, or 3.39 per share, a year earlier. Analysts on average had forecast 4.01 per share, according to Thomson Reuters I/B/E/S.

Goldman emerged as Wall Street's most influential bank after the financial crisis but has faced a backlash over its pay and business practices.

The bank's co-general counsel, Greg Palm, launched a rebuttal of the SEC charges during the bank's earnings conference call.

Palm said the firm was “very disappointed” that the SEC had brought charges and insisted that Goldman “would never mislead anyone.”

He also said investors who lost money on the sub-prime mortgage product that is the focus of the SEC suit had a wealth of experience and background in such deal.