CEO of Goldman Sachs Lloyd C. Blankfein listens to President Barack Obama speak at the annual meeting of the Business Council at the Park Hyatt Hotel in Washington, May 4, 2010. REUTERS/Larry Downing
Posted on 04/13/2011 6:48:28 PM PDT by NormsRevenge
WASHINGTON (Reuters) – In the most damning official U.S. report yet produced on Wall Street's role in the financial crisis, a Senate panel accused powerhouse Goldman Sachs of misleading clients and manipulating markets, while also condemning greed, weak regulation and conflicts of interest throughout the financial system.
Carl Levin, chairman of the Senate Permanent Subcommittee on Investigations, one of Capitol Hill's most feared panels, has a history with Goldman Sachs.
He clashed publicly with its Chief Executive Lloyd Blankfein a year ago at a hearing on the crisis.
The Democratic lawmaker again tore into Goldman at a press briefing on his panel's 639-page report, which is based on a review of tens of millions of documents over two years.
Levin accused Goldman of profiting at clients' expense as the mortgage market crashed in 2007. "In my judgment, Goldman clearly misled their clients and they misled Congress," he said, reading glasses perched as ever on the tip of his nose.
A Goldman Sachs spokesman said, "While we disagree with many of the conclusions of the report, we take seriously the issues explored by the subcommittee."
The panel's report is harder hitting than one issued in January by the government-appointed Financial Crisis Inquiry Commission, which "didn't report anything of significance," Republican Senator Tom Coburn said at the briefing.
More than two years since the crisis peaked, denunciations of Wall Street misconduct are less often heard on Capitol Hill, with lawmakers focused on fiscal issues. But Coburn joined Levin at Wednesday's bipartisan briefing, firing his own sharp attacks on the financial industry.
"Blame for this mess lies everywhere -- from federal regulators who cast a blind eye, Wall Street bankers who let greed run wild, and members of Congress who failed to provide oversight," said Coburn, the subcommittee's top Republican.
(Excerpt) Read more at news.yahoo.com ...
Where’s the report criticizing the Feds’ role, Mr. Levin.
CEO of Goldman Sachs Lloyd C. Blankfein listens to President Barack Obama speak at the annual meeting of the Business Council at the Park Hyatt Hotel in Washington, May 4, 2010. REUTERS/Larry Downing
And how about Goldman lying to congress about borrowing from the fed.
I hate hearing about this stuff, as nothing ever happens and it’s always business as usual after anything like this is brought to light.
Maybe Congress will write GS a strongly worded letter. That’ll teach ‘em!
Dog and pony show - public spectacle but utterly meaningless.
“Where’s the report criticizing the Feds’ role, Mr. Levin.”
Post of the decade!!!
It’s the damn politicians that got us into this mess, not the market.
Where’s the MSM outrage for the numbnuts that really caused ALL of our financial problems?
Nothing will happen. Goldman will skate. Neither will the gubmint ever admit its role in strong-arming banks to loan to unqualified borrowers.
Dog and pony show - public spectacle but utterly meaningless.
That’s Washington D C to a tee. Every last one of them. Congress, WH, Lobbyist, Staffers and on and on. They all suck.
You’re absolutely correct.
15 minutes of bad publicity and they’ll walk with tens of billions in taxpayer funds.
“Maybe Congress will write GS a strongly worded letter. That’ll teach ‘em!”
Yeah. Here, let me draft that letter:
Dear Goldman,
“Bad Goldman, bad. Bad, bad, bad Goldman, bad.”
Sincerely, Congress
Can I make a deal. $1 Billion and the senate can write a 1000 page report berating me. Hell. For $1B I will write the report for them. Sheeshh!!!
Even better. Subpoena them and yell at them for 10 minutes on CSPAN. That will scare them.
Where is the panel to accuse the Senate and House of misleading taxpayers and manipulating markets?
The government did not strong arm bank’s to make interest only loans and the other creative financing hog wash they turned out, hell they wanted to make everyone they could. Up until the very end the realtors and home builders associations had their k street monkeys on the hill trying to keep the cash cow alive. They were clearing about 10,000 on each deal, they wanted more.
Yep, Congress will direct all fraud to the black hole called SEC which Congress has full control over...whadda circle jerk.
Did they happen to mention that The Goleman Sax is primarily Democrat?!?
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