BAG OF PUS

Goldman Sachs' London units will be formally investigated by Britain's financial regulator after U.S. authorities sued the bank for fraud. Financial-market regulators in France and Germany are reviewing the lawsuit filed against Goldman Sachs last week by the SEC.

Prime Minister Gordon Brown called on the FSA, which he created in 1997, to investigate Goldman Sachs two days ago, accusing employees of the bank of "moral bankruptcy."

Chancellor of the Exchequer Alistair Darling said today that regulators need to take urgent steps and that the charges against Goldman Sachs had "huge ramifications." Darling, who described the securities Goldman sold as "a bag of pus," said the government would look at changing the law if necessary.