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Goldman Sachs readies forceful response against claims it misled clients

Posted By admin On April 24, 2010 @ 3:25 am In Money Watch | Comments Disabled

Zachary A. Goldfarb
Washington Post [1]
April 24, 2010

Goldman Sachs is preparing its most detailed defense yet to allegations that it misled clients in its mortgage securities business, arguing that the firm was unsure whether housing prices would rise or fall and did not take any action at odds with the interests of its clients.

An internal Goldman document, prepared for senior executives and obtained by The Washington Post, addresses the criticism that the bank invested its own money betting against the housing market while simultaneously urging clients to invest in securities that would increase in value only if the housing market did.

Those concerns over possible double-dealing spiked a week ago as the Securities and Exchange Commission filed a fraud suit against Goldman, alleging that it misled clients by selling them mortgage-related securities secretly designed to fail.

Goldman prepared the 11-page document to serve as the basis for testimony that chief executive Lloyd Blankfein is scheduled to deliver Tuesday before the Senate Permanent Subcommittee on Investigations.

Full article here [1]

Goldman Sachs readies forceful response against claims it misled clients 150410banner7 [2]

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URLs in this post:

[1] Washington Post: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/23/AR2010042305183.html?hpid=topnews

[2] Image: http://www.homegain.com/housead/homes_for_sale/index?entryid=11502

[3] Goldman Sachs misled Congress after duping clients, Senate panel chairman says: http://www.prisonplanet.com/goldman-sachs-misled-congress-after-duping-clients-senate-panel-chairman-says.html

[4] Goldman Again Tries To Dispel Notion That It Bets Against Its Clients: http://www.prisonplanet.com/goldman-again-tries-to-dispel-notion-that-it-bets-against-its-clients.html

[5] Goldman Sachs Clients Advised To Do Opposite Of What They Are Told: http://www.prisonplanet.com/goldman-sachs-clients-advised-to-do-opposite-of-what-they-are-told.html

[6] Goldman Bet Against Entire European Nations – Who Were Clients – the Same Way It Bet Against Its Subprime Mortgage Clients: http://www.prisonplanet.com/goldman-bet-against-entire-european-nations-who-were-clients-the-same-way-it-bet-against-its-subprime-mortgage-clients.html

[7] Goldman Sachs’ $550m fine no ‘heavy price’ if markets are anything to go by: http://www.prisonplanet.com/goldman-sachs-550m-fine-no-heavy-price-if-markets-are-anything-to-go-by.html

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