Goldman Sachs, AIG to Testify at Derivatives Hearing (Update2)
June 16, 2010, 5:02 PM EDT(Adds Goldman Sachs subpoena in fifth paragraph.)
By Jesse Westbrook
June 16 (Bloomberg) -- Representatives of Goldman Sachs Group Inc. and American International Group Inc. will appear before the Financial Crisis Inquiry Commission as the panel holds a hearing on the role of derivatives in the credit crunch.
The panel, led by former California Treasurer Phil Angelides, will also call witnesses from the U.S. Commodity Futures Trading Commission, the Office of Thrift Supervision, and the New York State Insurance Department for the hearing on June 30 and July 1, according to a statement released today. The statement didn’t name the witnesses.
AIG, once the world’s biggest insurer, was bailed out by the U.S. in 2008 after collateral calls from Wall Street firms including New York-based Goldman Sachs on contracts tied to subprime mortgages. Derivatives have been blamed by lawmakers and investor Warren Buffett for bringing the financial system to the brink of collapse in 2008.
Angelides announced on June 7 that the FCIC had subpoenaed Goldman Sachs, claiming the company tried to hinder a probe by overwhelming the panel with documents and resisting attempts to interview managers including Chief Executive Officer Lloyd Blankfein.
Goldman Sachs spokesman Michael DuVally said the company has been and will continue to provide the FCIC with information. Mark Herr, an AIG spokesman, declined to comment.
Lawmakers appointed the 10-member FCIC last July to investigate the causes of the worst financial crisis since the Great Depression. The panel has until December to report its findings to Congress.
--Editor: Rick Green, Gregory Mott
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net
To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net
