Posted: Apr 27, 2010 9:31 AM by Associated Press
Top executives of Goldman Sachs today sit before a Senate subcommittee that wants to know what the firm was doing during the housing meltdown.
Goldman Sachs already stands accused of fraud by the Securities and Exchange Commission. The SEC says the company misled its investors by pushing complex mortgage securities that it knew would likely tank.
In its 18-month investigation, the SEC says some 2 million Goldman Sachs e-mails it scrutinized show a shift in early 2007 from neutral to a short position. In other words, a move to a position in which the company bet that the mortgage market would likely collapse.
Goldman Sachs strongly denies the allegations. In his testimony today, CEO Lloyd Blankfein will repeat that his firm lost $1.2 billion in the mortgage meltdown, and never bet against its clients.