Greg Smith
The retirement letter from Goldman Sachs Executive Director Greg Smith, which was published as an op-ed in the New York Times on Monday, has been the talk of the town and likely reason the company lost market value on Tuesday. Reuters

(REUTERS) -- The Securities and Exchange Commission notified Goldman Sachs Group Inc that it may file a civil case against the bank related to a $1.3 billion offering of subprime mortgage securities, Goldman said in a regulatory filing on Tuesday.

Goldman received the Wells notice on Feb. 24 related to the bond deal, which was underwritten by Goldman in 2006, according to the 10-K filing.

A Wells notice indicates that SEC staff plans to recommend that the Commission take legal action, and gives a recipient a chance to mount a defense.

The bank said it will be making a submission to SEC staff and intends to engage in a dialogue with them to address their concerns.

(Reporting By Lauren Tara LaCapra; Editing by Gary Hill)

SEC Goldman sachs Mortgage Investment