Financial commission subpoenas Goldman Sachs
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- A television news antennae is shown next to Goldman Sachs headquarters, Monday, April 19, 2010, in New York. Goldman has been the subject of increasing scrutiny in Washington in recent months. AP Photo
POLITICO 44
An independent commission investigating the causes of the financial crisis has subpoenaed Goldman Sachs, claiming the firm has been uncooperative in providing information needed to investigate causes of the 2008 market meltdown.
The Financial Crisis Inquiry Commission said Goldman has failed “to comply with a request for documents and interviews in a timely manner,” forcing the commission to issue a subpoena, which will compel executives to submit to interviews and release certain documents.
The commission, chaired by Democrat Phil Angelides and former Republican Rep. Bill Thomas, issued the subpoena Friday, and Goldman immediately signaled that they would make top executives available to be interviewed by the commission.
The FCIC’s chief compliant appears to be that Goldman has been slow to respond to requests for information. The commission’s top two officials said Goldman responds to document requests with large volumes of un-indexed records instead of targeted responses to specific questions. They called the company’s efforts “deliberate and disruptive” and “abysmal, unacceptable.” Angelides likened Goldman’s participation to pulling a dump truck up to their office and dumping “a bunch of rubbish.”
“We should not be forced to play ‘Where’s Waldo’ on behalf of the American people,” Angelides said.
Other firms have been far more cooperative, top panel members said. And the clock is running out on the investigation. The FCIC, which employs about 50 employees has to issue its report about by December.
The subpoena is another blow to Goldman’s reputation in Washington, where the financial crisis has seriously muddied up the company’s image. After the Securities and Exchange Commission filed suit against Goldman, some lawmakers were quick to return donations and lambast the banking giant. Congress has also launched investigations into the investment bank’s bundling and selling of risky mortgages. Sen. Carl Levin’s (D-Mich.) investigative subcommittee hauled a number of the firm’s executives to Washington to testify earlier this year.
The FCIC has probed Goldman and other banks in the past. Thomas said he is “not interested” in bringing CEO Lloyd Blankfein back to Washington to testify and give him “a public forum to sound reasonable when in fact their behavior has not been.”
Goldman says it will comply with the subpoena.
“We have been and continue to be committed to providing the FCIC with the information they have requested,” a Goldman spokesman said in an emailed statement.
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Jun. 7, 2010 - 12:12 PM EST
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Read all 15 comments in our forumHow about the subpoenas to Fannie Mae and Freddie Mac and full disclosure of who did what along with criminal charges? Who authorized Fannie and Freddie to get into the subprime business when these entities reported to Congress, and they took on risk to the degree they did. And how about the execs bonuses over 5-6 years because of it? in addition get an independent commission to investigate those in Congress involved with the F&F role in the meltdown. Goldman is just one diversion from a larger more complex problem that even the Feds knew Fannie and Freddie were into. However the whole mess hasn't stopped the foreclosures from happening at record numbers.
They need to investigate why Goldman Sachs dumped 44% (4.6 million shares) of their BP holding three weeks before the Deepwater Horizons explosion, as did UBS who dumped 99% (2.1 million shares). The BP Oil CEO Tony Hayward sold 1/3 of his BP stock on MARCH 17 - a full month before the explosion.
On April 17, Goldman Sachs shorted Transocean stock - 3 days before the explosion.
Could it be that Peter Sutherland (Chairman of Goldman Sachs International) just happens to also be Chairman of BP Oil? Insider information? And, rather than ready the world for the impending disaster in the Gulf of Mexico, they were more concerned with bilking others out of money.
Goldman Sachs also needs to be investigated for their nano-second trading software. By the way, what ever happened to the gentleman who stole a copy of that software? And, how much did they net when the market plunged 1000 points in 20 minutes?
.all
Still waiting for the an investigation on why executives at Freddie Mac and Fannie May got millions in bonus's when they are receiving billions of tax payer bailouts!
Hmmm, Hello Congress!
Oh Nos! It's a conspiracy to drown us in oil!
Build an ark, and put two of every animal, bird, and beast onboard....
Bring in the rack and some thumb screws at the same time, that'll make them talk.
When these theives and thugs are thrown in jail , I will then believe we have a true effective non corrupt government
Let Goldman Sach's executives melt in jail in the same way they've melted down this nation's financial strength.
Someone at Goldman must've stepped on Obama's favorite toe and did not apologize profusely enough. So far, this investigation looks like a witch hunt.
Ultimately, Goldman will survive; Obama will not.
Perhaps Freddie and Fannie are not on your list because Obama, his brainwashed Democrats and their "good governance" have the power not to investigate what they do not want investigated.
Perhaps Freddie and Fannie are not on your list because Obama, his brainwashed Democrats and their "good governance" have the power not to investigate what they do not want investigated.
Mr. President. You’re in the mood to beat some butt, to kick some ass? How about pummeling some people at Goldman Sachs? http://ping.fm/MhGEY
Mr. President. You’re in the mood to beat some butt, to kick some ass? How about pummeling some people at Goldman Sachs? http://ping.fm/MhGEY
What about the jackasses that gave the CBO the phony and deceitful accounting numbers used to help pass the freeking health care bill. How about we start with them!!!!!!
Here and I was thinking that they knew the explosion was going to happen because the instrument readings were "off-the-charts". Oil experts have stated that BP Oil should have known at least 2 weeks BEFORE the actual explosion happened. My concern was that while BP Oil knew (from their readings) that the oil was going to be uncontrollable, they were negligent in not informing the government and get a head start on the impending oil geyser. And, instead they were only looking at filling their coffers more.
As for Goldman Sachs, I am certain that their "trading software" helps make certain they are almost always on the money-making side of their transactions. The leadership and high level executives seem to share the same psychopathic characteristics as Ken Lay (Enron), Bernie Madoff, Charles Manson and Ted Bundy.
Perhaps since you were so quick to assume that I was insinuating this was a conspiracy, and you are defending Goldman Sachs and/or BP Oil, that you have some personal or business relationship with those oligarchies. Or, do you know something specific about this disaster?