Senate Grills Goldman over Mortgage Deals

Wednesday, April 28, 2010

As Congress considers tough new regulations on the financial industry, a Senate panel put executives from Goldman Sachs on the hot seat on Tuesday.

Senators grilled executives about mortgage investments the firm sold while the housing market collapsed. 

The Securities and Exchange Commission has filed a fraud suit against Goldman on one set of transactions, saying they were built to fail while Goldman profited by betting against them.

But in his testimony today, CEO Lloyd Blankfein defended the firm's practices. He also thanked the government for the $10 billion bailout Goldman received, pointing out that the company paid back an amount that he says equaled a 23 percent annual return.

During an exchange with Michigan Senator Carl Levin, Blankfein insisted that Goldman's market-making business often requires the firm to end up on the other side of their clients' bets.

“We are the other side of what our clients want to do,” Blankfein said. “The thing we are selling for them is supposed to give them the risk they want.”

More in:

The WQXR e-newsletter. Show highlights, links to music news, on-demand concerts, events from The Greene Space and more.

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.

Follow WQXR 

Sponsored

Feeds