Senators Seek, Fail to Get an 'I'm Sorry'

This is an interesting article in the Wall Street Journal which details the current progress of the Goldman Sachs saga. Goldman are being grilled by Senate Committees after the SEC launched a fraud investigation.

It is interesting for two reasons:

1. Firstly, Goldman are being investigated for making misleading statements to investors in relation to CDO's which it sold, rather than being investigated for any breaches of directors duties. Is this because the laws around directors duties are not sufficient to allow prosecution in this type of situation?
2. Secondly, it is interesting that Goldman are being questioned by a senate committee, rather than being prosecuted in court. It seems to suggest that the investigation is more of a political exercise rather than a case with some basis.