Goldman's bid didn't disclose probe to Calpers

Reuters reported exclusively that Goldman Sachs assured pension fund giant Calpers in March that it was not “the target of a formal investigation” — six months after U.S. securities regulators notified the powerful Wall Street bank that it was likely to be charged with fraud in connection with the underwriting and marketing of a $1 billion subprime-mortgage-linked security. On April 16, the Securities and Exchange Commission filed a civil suit against Goldman over that transaction. Goldman’s assurances to the Calpers came on the bank’s March 18 application to become a real estate investment consultant, according to a document obtained by Reuters. Calpers spokesman Brad Pacheco told Reuters the pension fund’s investment staff “will be reaching out to Goldman for an explanation on their response.”