Goldman revelations help push horrendous financial reform bill

April 27, 2010 04:02

On Saturday, Goldman released a series of e-mails from Mr Tourre, in one of which he jokes that he has sold doomed investments to widows and orphans.

From BBC

Goldman Sachs made billions of dollars at the expense of its clients during the collapse of the housing market, a US Senate investigation has found.

The investigation – which obtained Goldman e-mails – said bank executives had misled investors over mortgage-related investments that turned sour.

The Senate panel released its findings ahead of its hearing on Tuesday into the Goldman affair.

Goldman vigorously denies any wrongdoing.

The Permanent Subcommittee on Investigations has been sifting through e-mails and other Goldman documents obtained in an 18-month investigation.

Excerpts from the documents were published Monday, a day before Goldman chief executive Lloyd Blankfein and other top Goldman executives appear before the committee.

‘Conflict of interest’

On 16 April, the Securities and Exchange Commission (SEC) filed civil fraud charges against Goldman and one of its executives alleging they failed to disclose a conflict of interest.

If our clients believe [the charges] we don’t deserve their trust
Lloyd Blankfein

The SEC claims that Goldman arranged mortgage investments without telling clients that the portfolio was put together with help from a hedge fund that was betting on them to fail.


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