Maybe Goldman Sachs Isn't Bulletproof...
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 see...in 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.