The Interrogation of Lloyd Blankfein by Mike Whitney

[Crewleader]

April 28, 2010

"Goldman Puts Its Own Interests Ahead of the Interests of Its Clients"

The Interrogation of Lloyd Blankfein

By MIKE WHITNEY

Tuesday's hearings of the Permanent Subcommittee on Investigations laid the groundwork for future criminal prosecutions of Goldman Sachs Chief Executive Lloyd Blankfein and his chief lieutenants whose reckless and self-serving actions helped to precipitate the financial crisis. Committee chairman Senator Carl Levin (a former prosecutor) adroitly managed the proceedings in a way that narrowed their scope and focused on four main areas of concern. Through persistent questioning, which bordered on hectoring, Levin was able to prove his central thesis:

1. That Goldman puts its own interests before those of its clients.

2. That Goldman knowingly misled it clients and sold them "crap" that it was betting against.

3. That Goldman made billions trading securities that pumped up the housing bubble.

4. That Goldman made money trading securities that triggered a market crash and led to the deepest recession in 80 years.

The hearings lasted for 8 hours and included interviews with seven Goldman executives. Every senator had the opportunity to make a statement and question the Goldman employees. But the day belonged to Carl Levin. Levin was well-prepared, articulate and relentless. He had a game-plan and he stuck to it. He peppered Goldman's Blankfein with question after question like a prosecuting attorney cross-examining a witness. He never let up and never veered off topic. He knew what he wanted to achieve and he succeeded. Here's a clip from his opening statement:

http://www.counterpunch.org/whitney04282010.html

[Po_d Mainiac]

1. The whole scene is available on C-Span

Darth was the third panel

[dkf]

2. I saw this but most Wall Street types on CNBC didn't

The fact that they don't get it scares me.