Goldman Sachs (GS) Is Just The First

Now that Goldman Sachs (GS) is in the crosshairs of the SEC, what other companies might soon face increased scrutiny? Bank of America (BAC) may also face a fraud investigation because of two firms acquired during the crisis: Countrywide and Merrill Lynch. According to Dutch bank Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, "Merrill Lynch & Co. engaged in the "same type of fraudulent conduct" that Goldman Sachs Group Inc. was accused of committing." Deutsche Bank (DB) is likely to face troubles based on its marketing of subprime mortgages. Deutsche Bank dropped almost 10% today amidst fears of a SEC investigation. Morgan Stanley (MS) appears to be in the clear. Morgan Stanley should pick up business from firms seeking to avoid doing business with Goldman until the investigation is over. American Insurance Group (AIG) will likely escape any severe penalties because it is a government owned entity.