The Federal Reserve will look into a report that several Wall Street firms, including Goldman Sachs, have been betting on a default by Greece on its sovereign debt, Fed Chairman Ben Bernanke told the Senate Banking Committee on Thursday.
“We are looking into a number of questions related to Goldman Sachs and other companies in their derivatives arrangements with Greece,” Bernanke said in response to a question for Senate banking Committee Chairman Chris Dodd.
Bernanke said the Securities and Exchange Commission was also “interested” in the issue.
“Obviously, using these instruments in a way that potentially destabilizes a company or a country is counterproductive,” Bernanke said. “We’ll certainly be evaluating what we learn from the activities of the holding companies that we supervise here in the U.S.”
Full story: Fed to Examine If Wall Street Is Betting Against Greece – CNBC