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Goldman Says SEC Closed Probe of Firm After Threatening Case

Goldman Sachs Group Inc. said U.S. regulators ended an investigation of its role in selling $1.3 billion of mortgage-backed securities and won’t sue the firm, reversing course after investigators warned in February that they intended to recommend legal action.

Securities and Exchange Commission lawyers told Goldman Sachs on Aug. 6 that they no longer planned to pursue claims against the bank, the New York-based company said today in a regulatory filing. The regulator had sent Goldman Sachs a so-called Wells notice in February, which typically gives recipients a chance to dissuade investigators from recommending the agency authorize enforcement action.