Goldman Sachs Group (NYSE:GS) $2 billion Hudson Mezzanine collateralized debt obligation, sold in 2006, is the target of a probe by the Securities and Exchange Commission, according to a person with knowledge of the matter. The inquiry into the CDO may not lead to any additional actions against the New York-based securities firm, said the person, who declined to be identified because the investigation isn’t public. Michael DuVally, a spokesman for Goldman Sachs, declined to comment, as did SEC spokesman John Nester. The Financial Times reported the probe yesterday. Goldman Sachs shares have fallen 26 percent since the SEC filed a fraud lawsuit against the firm on April 16 that related to its 2007 sale of a CDO called Abacus. Senator Carl Levin, a Michigan Democrat, said in April that Goldman Sachs’s sales of CDOs such as Hudson raised “a real ethical issue.” –Bloomberg
AT&T (NYSE:T) on Wednesday acknowledged a security breach that exposed the email addresses of apparently more than 100,000 users of Apple (NASDAQ:AAPL) iPad. The vulnerability only affected iPad users who signed up for AT&T’s "3G" wireless Internet service. Gawker Media lists some big names among those affected, including Rahm Emanuel. In other news, The Men’s Wearhouse (NYSE:MW) said late Wednesday its first-quarter profit rose to $13.6 million, or 26 cents a share, from $5.3 million, or 10 cents a share, in the year-ago period. Revenue increased to $473.5 million from $464.1 million a year ago. –Daily Finance
The U.S. trade deficit widened a bit in April, as the value of crude imports hit the highest level in a year and a half. Separately, the number of U.S. workers filing new claims for unemployment benefits dipped slightly in the first week of June while continuing claims fell to the lowest level in 18 months, indicating the job market continues to slowly improve. U.S. exports fell 0.7% to $148.81 billion from $149.83 billion the previous month. Imports decreased, falling 0.4% to $189.09 billion from $189.88 billion in March. –The Wall Street Journal
The number of people filing for ongoing unemployment insurance plummeted by 255,000 to the lowest level since December 2008, according to government figures released Thursday. According to a Labor Department report, 4,462,000 people filed continuing claims in the week ended May 29, the latest week available, down more than a quarter-million from the previous week. Continuing claims reflect people who file each week after their initial claim until the end of their standard benefits, which usually last 26 weeks. The figures do not include those who have moved to state or federal extensions, nor people who have exhausted their benefits. –CNN Money
Filed under: 