Senate Majority Leader Harry Reid (D-Nev.) said Friday that fraud charges brought against banking giant Goldman Sachs make the case for passing financial reform legislation.

Reid issued a statement after the Securities and Exchange Commission filed the charges Friday morning, saying that they show that Wall Street needs additional rules foisted upon it to rein in risky behavior. He called on Republicans to support the effort.


“This is also why we need to pass strong Wall Street reform this year. When we clean up Wall Street, we will establish clear rules of the road to help keep Nevada families in their homes while protecting consumers, investors and financial institutions," he said. "Republicans should stop obstructing our efforts to hold Wall Street accountable so that Main Street can once again prosper.”

The majority leader's statement is a rebuke to the Senate GOP, all of whom signed a letter to him Friday saying that they oppose the current legislation and called for Reid to reopen bipartisan talks on the bill.

Goldman Sachs was charged with fraud for allegedly selling financial products that bet on subprime mortgages, a main cause of the financial crisis. The complaint alleges that the financial products were declined to fall in value.

Banking Committee Committee Chairman Chris Dodd (D-Conn.), who has ushered the bill through the Senate, said Friday: "We don’t need to know the outcome of this case to know that the opaque nature of unregulated asset backed securities fueled the financial crisis. And even as our country is still recovering from those mistakes, Wall Street financial firms continue to game the system.”

House Minority Leader John Boehner (R-Ohio) sought to turn the tables on Democrats earlier Friday, releasing a statement that tied Goldman to President Barack Obama, calling the bank a "key supporter" of the president.

The GOP has said that the financial reform bill before the Senate would allow for future bailouts of large financial firms, such as Goldman, that fail but Reid said today that the legislation stops "banks from becoming ‘too big to fail’ and end[s] taxpayer bailouts."