Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs
Congress has to let the people see a sacrifice, and Goldman Sachs is the latest lamb. Chief executive Lloyd Blankfein and managing director Fabrice Tourre are getting sent in to the coloseum to be roasted by the SEC and Congress for making hundreds of millions off the recession. They are in an implacably difficult situation but, like Toyota, they might emerge intact. Stranger things have happened.
Goldman’s current attempt at turning the tables of bad PR, is to publicly declare that they took a “$1.2bn loss” on home loans during 2007 and 2008, thus contesting that they fraudulently bet on the collapse of the market and profited to the tune of over $1bn. This is on top of the other mortgage deal they are being garroted for. Not good.
Their case isn’t being helped by disclosures in the courtroom of boastful internal emails describing how the company would be making a lot of money “betting against the mortgage market,” when at the same time they had received a $10bn bailout from the government and Americans were losing there homes. It also doesn’t look good when the senior Managing Director describes himself in emails as “Fabulous Fab.”
Insider analysts say that Goldman clients are still being supportive, but for how long? And if the SEC allegations prove true, one can imagine it will be curtains for their reputation.
Like this:
Be the first to like this post.
Whipping Boys
Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs
Congress has to let the people see a sacrifice, and Goldman Sachs is the latest lamb. Chief executive Lloyd Blankfein and managing director Fabrice Tourre are getting sent in to the coloseum to be roasted by the SEC and Congress for making hundreds of millions off the recession. They are in an implacably difficult situation but, like Toyota, they might emerge intact. Stranger things have happened.
Goldman’s current attempt at turning the tables of bad PR, is to publicly declare that they took a “$1.2bn loss” on home loans during 2007 and 2008, thus contesting that they fraudulently bet on the collapse of the market and profited to the tune of over $1bn. This is on top of the other mortgage deal they are being garroted for. Not good.
Their case isn’t being helped by disclosures in the courtroom of boastful internal emails describing how the company would be making a lot of money “betting against the mortgage market,” when at the same time they had received a $10bn bailout from the government and Americans were losing there homes. It also doesn’t look good when the senior Managing Director describes himself in emails as “Fabulous Fab.”
Insider analysts say that Goldman clients are still being supportive, but for how long? And if the SEC allegations prove true, one can imagine it will be curtains for their reputation.
Share this:
Like this:
Leave a Comment
Filed under Banks, Commentary
Tagged as allegations, Congress, Fabrice Tourre, Goldman Sachs, investigation, Lloyd Blankfein, recession, SEC