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Goldman Sachs Execs Testify in Fraud Case
Tuesday, April 27, 2010
A Senate panel will hear testimony from Goldman Sachs executives today over accusations of fraud from the Securities and Exchange Commission.
The BBC reports that an 18-month Senate investigation found that Goldman made billions of dollars at the expense of its clients during the collapse of the housing market. Investors were allegedly misled by Goldman executives when complex mortgage securities turned toxic. Findings from the Senate's investigation, which relies on 2 million e-mails and other company documents from 2006 and 2007, were released yesterday.
The big bank's CEO, Lloyd Blankfein, is among those expected to testify today before the Senate's Permanent Subcommittee on Investigations. Blankfein said in a statement that Goldman Sachs did not mislead clients.
"...We have to do a better job of striking the balance between what an informed client believes is important to his or her investing goals and what the public believes is overly complex and risky," Blankfein's statement said.
Fabrice Tourre, the Goldman manager accused of trying to sell an investment that was designed to lose value, is also scheduled to appear today. In prepared testimony, Tourre denies the SEC's allegations, saying, "I did not mislead."
Beginning at 10 A.M., you can live stream the hearings at WNYC.org.