Goldman Sachs, the Wall Street powerhouse, has been accused of defrauding investors by America's financial regulator.
The Securities and Exchange Commission (SEC) alleges that Goldman failed to disclose conflicts of interest.
The claims concern Goldman's marketing of sub-prime mortgage investments just as the US housing market faltered.
Goldman rejected the SEC's allegations, saying that it would "vigorously" defend its reputation.
News that the SEC was pressing civil fraud charges against Goldman and one of its London-based vice presidents, Fabrice Tourre, sent shares in the investment bank tumbling 12%.
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