The Pendleton Panther

Goldman Sachs Under Hot Water

Posted on: April 28, 2010

4 top Goldman Sachs executives swearing into court.

Goldman Sachs, Wall Street’s largest investment banking firm, has been under a lot of media and governmental scrutiny for its roles and actions in the financial meltdown of 2007 and 2008. Lawmakers and members of the Senate panel grilled former and current executives at Goldman with a vast array of criticisms and questions regarding the moves Goldman Sachs made during the beginning of the housing market collapse in 2007. The session lasted eight hours yesterday. They have been accused of marketing false product. According to the Daily Princetonian, “The charges claim Goldman Sachs led clients to believe that a financial product was high quality while simultaneously betting that the product was low quality. Like a cliche used-car salesman, it sold its clients a lemon. When the housing market collapsed, Goldman got rich and its clients went belly-up.” They have been accused by the committee of making up to 3.7 billion dollars in the process of betting heavily against the housing markets. The Security and Exchange Commission had also brought up a case against Goldman Sachs earlier in the month charging them with the defrauding of investors in the sale of a mortgage investment. The executives feel little remorse or emotion for the charges put upon them. According to CNN, “Regret to me is something you feel like you did wrong,” said Daniel Sparks, the former head of Goldman’s mortgages department. “I don’t have that.”We can only wait to see how this entire case plays out.

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