Goldman gets SEC notice over mortgage securities; MF Scrutiny

Goldman Sachs Group Inc. GS -0.35% said it received a Wells notice from the Securities and Exchange Commission related to disclosures in its sales materials for $1.3 billion of subprime mortgage-backed bonds.

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A Wells notice is the SEC's warning that civil charges may be coming, giving time to the recipient provide documents and state a case for why charges should not be filed.

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Goldman also said in its annual filing that it received government and regulatory inquiries concerning certain transactions with MF Global Holdings Ltd. MFGLQ 0.00% prior to its bankruptcy filing. Goldman said it is cooperating with all such inquiries.

The firm faces litigation related to its offering materials on $214 million in MF Global convertible notes. The suits, which seek class action status, allege that the offering materials failed to adequately describe MF Global's exposure to sovereign debt.