Just about every word – is a lie!
The chief executive of Goldman Sachs has defended his company’s business practices amid accusations of conflict of interests, that it knowingly sold customers products it thought would lose money, and that it helped cause the US financial crisis.
Testifying before the senate Permanent Subcommittee on Investigations in Washington DC on Tuesday, Lloyd Blankfein said customers who bought securities from Goldman were looking for risk “and that’s what they got”.
Carl Levin, the panel’s chairman, said there was a “fundamental conflict” in Goldman selling securities and then betting against the same securities, without telling customers…
The senator told Blankfein: “They’re buying something from you, and you are betting against it. And you want people to trust you. I wouldn’t trust you.”
And we should trust our senators? Fat chance!
But Blankfein, the final witness at the day-long hearing, denied such a conflict.
“We do hundreds of thousands, if not millions of transactions a day, as a market maker,” he said, noting that behind every transaction there was a buyer and a seller, creating both winners and losers…
Senior executives said that they were not prescient about the housing market, just diligent about limiting its risk.
“Unfortunately, the housing market went south very quickly,” Blankfein said. “So people lost money in it…”
The housing market went south through illegitimate gambles on mortgages for people who didn’t qualify. Programmatic sleaze endorsed as often by Democrats as Republicans.
Hoping Tuesday’s hearing would build support for financial reform legislation now before the senate, Democrats said Goldman’s actions leading up to the financial crisis clearly demonstrated a need for stronger regulation.
Over the course of the day, members of the committee left to vote on cloture, to allow debate before the Senate on financial oversight. Every single Republican voted against allowing debate.
Hypocrite of the day was the Democrat Claire McCaskill. Yammering at Lloyd Blankfein, she demanded to know why Goldman, Sachs didn’t provide oversight of derivatives?
She and her peers in Congress have the responsibility to legislate and monitor such oversight. Over the last couple of decades they have done exactly zero to provide what they whined about.