Goldman Rapped By Crisis Commission

Jun 8 2010 | 12:05pm ET

As it struggles to strike a settlement deal with the Securities and Exchange Commission, Goldman Sachs has found itself accused of hindering another federal investigation.

The Financial Crisis Inquiry Commission yesterday blasted the Wall Street giant of trying to “run out the clock” on the commission’s probe. According to the FCIC, Goldman has ignored or avoided interview and document requests, and recently handed over 2.5 billion pages of documents without giving the commission any idea of where to find the information it was seeking.

“We’re not going to let the American people be played for chumps here,” Phil Angelides, chairman of the commission, said. The FCIC has subpoenaed the firm.

Goldman denied trying to waylay the FCIC, saying it is “committed to providing the FCIC with the information they have requested.”

Goldman has been accused by the SEC of misleading investors in a collateralized debt obligation allegedly structured and marketed on behalf of hedge fund Paulson & Co. The firm has denied any wrongdoing and is seeking to have the fraud charges against it dropped in its talks with the SEC. But while several high-profile clients, including Warren Buffett and Citadel Investment Group founder Kenneth Griffin, have stuck by the firm, it doesn’t have many friends on Wall Street, according to a new poll.

Goldman “is being legitimately scrutinized,” according to 61% of the investors and analysts polled by Bloomberg. Just 29% say it is being “unfairly vilified.” Even more people—83%—say the august firm’s stature has been diminished in the past six months.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...