Why did the SEC file its lawsuit against Goldman Sachs when it did? SEC Inspector General H. David Kotz and members of the Senate Banking Committee are both asking that question. The Wall Street Journal's Thomas Catan, Liz Rappaport and Kara Scannell report on a hearing before the committee yesterday, where Kotz argued that "it would strain credulity to think it was coincidental that the SEC filed against Goldman on the same day in April that Koch issued a report criticizing the agency for missing chances to catch Allen Sanford's alleged $7 billion Ponzi scheme.

"I can't give you a conclusion right now, but it was suspicious," Kotz reportedly told the committee.

Goldman settled the SEC suit, which centered around a mortgage-backed securities sale in 2007, in July for $550 million. 

Edited by: Neil Anderson, Managing Editor


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