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Maybe Goldman Sachs Isn't Bulletproof...



July 30, 2009 – Comments (1) | RELATED TICKERS: GS , JPM

We chatted yesterday about Goldman Sachs' seeming ability to influence the government and use the financial markets as its liege.

Well, the government is at least contemplating getting medieval on Goldman.  Per the WSJ, a Senate panel has subpoenaed Goldman, Deutsche Bank, Washington Mutual (now part of JPMorgan), and perhaps others:

The congressional investigation appears to focus on whether internal communications, such as email, show bankers had private doubts about whether mortgage-related securities they were putting together were as financially sound as their public pronouncements suggested. Collapsing values for many of those securities played a big role in precipitating last year's financial crisis.

We'll the Rolling Stone article from yesterday's posting, this appears to Goldman's (and to be fair, the rest of Wall Street's) M.O...make a killing exploiting the markets and then pay some piddly amount as restitution years after the fact.  

We'll stay tuned.



1 Comments – Post Your Own

#1) On July 30, 2009 at 11:00 AM, TMFRhino (99.26) wrote:

Eh, this kind of reminds me of when Congress held somethign similar after the dot-com bust. Basically they found documents proving that many analysts internally thought internet stocks were garbage, but continued rating them positively to generate more business.

Not much came of it, except Henry Blodgett getting flogged, and I expect the same result this time.

-- Eric

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