The Yen rose against Euro for a second day due to the speculating investors buying move to protect against possible outcomes of the Goldman Sachs investigations. If the results of investigations go against Goldman Sachs this may cut off the Greece state aid package to Goldman Sachs.
Teams from German & United Kingdom Regulatory bodies are being sent to investigate Goldman Sach Group case. This development came yesterday when UK Prime Minister Gordon Brown asked for an investigation of Goldman Sach Group. The Securities & Exchange Commission, US has been asked by
German authorities to share the details of the case filed against Goldman Sachs.
These news have created a massive buy sentiment for Japanese Yen & it has appreciated against majority of other currencies.
As per US Securities & Exchange Commission report the Goldman Sach had created & sold a collateralized debt linked to sub prime mortgage & it did not disclose that Paulson & Co , a Hedge Fund has funded the underlying securities & put a bet on the Abacus 2007-AC 1, the vehicle. This if proved could be charged as Insider Trading & would result into reputation loss for Goldman Sachs.
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