WaMu Trustees Seek Goldman Probe

Dow Jones Newswires

Trustees for creditors left unpaid after the biggest banking failure in U.S. history say they suspect Goldman Sachs Group Inc. (GS) of targeting Washington Mutual Inc., in a naked short-selling scheme.

If those suspicions prove out, the alleged wrongs could translate into a damage award for those still looking for money from Washington Mutual’s Chapter 11 case, according to papers filed Friday in the U.S. Bankruptcy Court in Wilmington, Del.

Goldman Sachs spokesman Michael DuVally declined comment on Monday. Creditors are asking for a court order entitling them to investigate Goldman Sachs’ trading activities for evidence of naked short selling.

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