Friday, 26 August 2016
Last updated 5 hours ago
Apr 27 2010 | 2:39am ET
Citadel Investment Group founder Kenneth Griffin remains loyal to Goldman Sachs, and blasted Democrats for using the fraud charges against the Wall Street giant to push their financial reform proposals.
Griffin said Citadel would “absolutely” remain a Goldman client, adding, “from my personal experience, Goldman Sachs has been a very solid partner of Citadel.” And while he acknowledged that “the Goldman Sachs case has clearly energized the Democrats with respect to passing the regulator reform,” he has no sympathy for the new momentum-builder.
“I think that the disclosure around one transaction being the justification to vilify Goldman Sachs or to pass regulatory reform is just incredible,” Griffin told the Milken Institute Global Conference in Beverly Hills, Calif. “I don’t want to use the word childish, but it’s childish.”
The Securities and Exchange Commission has accused Goldman of misleading investors about the role of hedge fund Paulson & Co. in the structuring of a collateralized debt obligation that would up costing investors some $1 billion—and making Paulson, which shorted the CDO, an equal amount. But Griffin called the matter a fight over a “highly technical point” and not a matter of Goldman’s “lacking in integrity and ethics.”