UK launches Goldman investigation

The UK has launched a formal investigation into alleged fraud at Goldman Sachs. Britain's Financial Services Authority took the action four days after the United States accused Wall street's most powerful investment bank of duping clients.

The FSA says it will work closely with its U.S. counterpart. In a further development, the German bank IKB says it's reviewing its financial transactions with Goldman Sachs in the run up to the banking crisis. IKB nearly collapsed in 2007 and lost almost all of the 150 million dollars it invested in Goldman's debt obligation.

Germany's financial regulators also say they are looking at the circumstances surrounding the US charges against Goldman.