Goldman Sachs gives reform bill fresh legs

The Securities and Exchange Commission on Friday filed suit against Goldman Sachs, alleging the bank sold mortgage securities secretly selected by a hedge fund manager who was betting heavily against the housing market.

McConnell, the Senate minority leader, said Obama was trying to "politicize the issue," to bolster support for Sen. Christopher Dodd's financial reform bill. Just before the SEC charges were made public, McConnell said he had gathered 41 Republican signatures on a letter in attempt to block the bill from reaching the Senate floor, The New York Times reported Sunday.

During Obama's weekly radio address Saturday, the president called McConnell's stance on the bill "cynical and deceptive," referring to McConnell's position that the bill should prevent taxpayers from bailing out financial firms in the future, which Democrats say is already part of the package.

U.S. Treasury Secretary Timothy Geithner split the difference. "I can't comment on the details of that investigation," he said. "But I can tell you that I am very confident that we're going to have the votes for a strong package of financial reforms."

Copyright 2010 United Press International.