The Truth, Some Truth And Something Like The Truth

All top executives at Goldman Sachs have Tuesday made their testimonies before the Senate members of the U.S. Congress – including CEO Lloyd Blankfein. They all did their best to defend themselves against the legislation brought against them. Here’s the full transcripts of all the prepared statements, and video recordings of the U.S politicians questioning of the Goldman-leaders.

“What you perceive, your observations, feelings, interpretations, are all your truth. Your truth is important. Yet it is not The Truth.”

Linda Ellinor


The CEO of Goldman Sachs testily defended his company’s ethics and business practices during the nation’s financial crisis on Tuesday, saying customers who bought securities from the Wall Street giant came looking for risk “and that’s what they got.”

“Unfortunately, the housing market went south very quickly,” Lloyd Blankfein told skeptical senators on an investigatory panel. “So people lost money in it.”

He was the final witness in a daylong hearing on Goldman Sachs’ behavior, which resulted in a government civil fraud charge earlier this month.

Five present and two former Goldman officials held their ground in hours of contentious testimony, unflinchingly defending their conduct and denying that the Wall Street investment bank helped cause the near-meltdown of the nation’s financial system.

Sen. Carl Levin, D-Mich., the panel’s chairman cited a “fundamental conflict” in Goldman’s selling securities and then betting against the same securities — and not telling the buyers.

“They’re buying something from you, and you are betting against it. And you want people to trust you. I wouldn’t trust you,” Levin told Blankfein.

Blankfein denied such a conflict. “We do hundreds of thousands, if not millions of transactions a day, as a market maker,” Blankfein said, noting that behind every transaction there was a buyer and a seller, creating both winners and losers.

Here’s the full prepared testimonial of  Lloyd Blankfein.

The following Goldman executives was called in on the carpet before the Senate in today’s hearing:

LLOYD C. BLANKFEIN

Chairman and Chief Executive Officer

DANIEL L. SPARKS

Former Partner, Head of Mortgages Department

Prepared testimony

JOSHUA S. BIRNBAUM

Former Managing Director, Structured Products Group Trading

Prepared testimony

MICHAEL J. SWENSON

Managing Director, Structured Products Group Trading

Prepared testimony

FABRICE P. TOURRE

Executive Director, Structured Products Group Trading

Prepared testimony

DAVID A. VINIAR

Executive Vice President and Chief Financial Officer

Prepared testimony

CRAIG W. BRODERICK

Chief Risk Officer

Prepared testimony

All testimonies provided by Zero Hedge.


The senators asking questions was: Carl Levin Chairman (D-MI), Thomas R. Carper (D-DE), Mark L. Pryor (D-AR), Claire McCaskill (D-MO), Jon Tester (D-MT), Tom Coburn Ranking Member (R-OK), Susan M. Collins (R-ME), John McCain (R-AZ), John Ensign (R-NV).

“I’ve Been Targeted”

Embattled Goldman Sachs Executive Director Fabrice Tourre who was sued by the SEC for fraud told the Senate subcommittee today that he will defend himself in court against the suit.

I deny — categorically — the SECs allegation, Tourre said at a hearing of the Permanent Subcommittee on Investigations. I will defend myself in court against this false claim, he said, adding that a deal at the center of the suit was not designed to fail.

Tourre, 31, and six other current and former Goldman Sachs employees will testify before lawmakers about the firms mortgage-securities business in the years leading up to the economic collapse of 2009.

Inside Goldman Sachs

Here’s the morning report from ABC News, featuring clips from Lloyd Blankfein’s testimony:

The Essential Background Material:

Fitch: The Long-Term Goldman-Effect
Will The Goldman-Case Kill The OTC Market?
Conquering The Devil
Goldman’s Collateralized, Securitized And Synthesized Fraud
Obama: “It Is Time”
Goldman Sachs Charged With Fraud – Here’s The SEC filing
Two Thirds of Americans Support Stricter Financial Regulations
Living In A Derivative World


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8 Comments

Filed under International Econnomic Politics, National Economic Politics

8 responses to “The Truth, Some Truth And Something Like The Truth

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