A Senate subcommittee claims that mortgage traders at Goldman Sachs tried to manipulate the prices of derivatives tied to subprime mortgages in May 2007. The Permanent Subcommittee on Investigations, chaired by Sen. Carl Levin (D-Mich.), cited in its scathing report of the financial crisis four collateralized debt obligations that Goldman Sachs created and sold to reduce its exposure to subprime risk.
