Well direct millions if Goldman is guilty says Brown

Katherine Griffiths, Banking Editor & ,}

Gordon Brown has incited up the feverishness on Goldman Sachs, notice the investment bank that it faced profitable millions of pounds of remuneration to British taxpayers if it was shown to have committed fraud.

Speaking from the discuss route in Coventry yesterday, the Prime Minister said: If what happened at Goldman Sachs and in any alternative bank is proven to be wrong, afterwards hundreds of millions of dollars in remuneration should be paid to British banks and since we are the greatest shareholder in most of them, to the British taxpayer.

Mr Browns conflict came after the Financial Services Authority non-stop a grave enforcement review on Tuesday in to Goldman Sachs International, the banks London-based business.

The FSA exploration was sparked by the US Securities and Exchange Commission, which dumbfounded the marketplace last Friday by accusing Goldman and one of the vice-presidents, Fabrice Tourre, of fraudulently offered a formidable investment formed on sub-prime loans to clients in a understanding that lost $1 billion.

The FSA is accepted to have non-stop the review since Goldmans mortgage derivatives unit, the multiplication at the centre of the SECs allegations, was formed in Goldman Sachs International. The British regulator may additionally be questioning since the argumentative understanding was marketed in Europe. Goldman Sachs denies all charges.

Mr Brown, who has already indicted Goldman of dignified bankruptcy, done transparent yesterday that aggressive the banks would sojourn a key thesis in the run-up to the ubiquitous election.

With the last leaders discuss subsequent Thursday to concentration on the economy, most believe that anti-banker tongue will be ratcheted up in the entrance days.

The SECs charges opposite Goldman have heightened critique of investment banks, that helped to fuel the sub-prime burble by formulating billions of dollars of formidable derivatives that authorised investors especially sidestep supports to gamble that the marketplace was going to collapse. In most cases, mainstream banks were on the wrong side of these bets, contributing to their problems as the credit markets froze over in 2007. Governments were forced to step in to save the monetary complement with multibillion-pound bailouts for banks.