Monday
Apr262010
Levin Wants Clamp Down On Speculative Actions Of Investment Banks
Monday, April 26, 2010 at 4:59PM
By Justine Rellosa
Talk Radio News Service
With top executives from investment bank Goldman Sachs set to testify Tuesday in front of a Senate Government and Homeland Security subcommittee, Sen. Carl Levin (D-Mich.) today showcased approximately 500 pages of documents that illustrate how the scandal-riddled investment bank “repeatedly put its own interests and profits ahead of the interest of its clients.”
“For large fees, Goldman helped run the conveyor belt that dumped hundreds of billions of dollars of toxic mortgages into the financial system,” said Levin, who chairs the subcommittee that will host Tuesday's hearing.
The documents the Senator previewed included internal reports and emails that, according to Levin, show Goldman Sachs betting against the mortgage market throughout 2007, despite the fact that the company has denied such accusations.
“Its own documents show that it engaged in what one top executive described as 'the big short,'” said Levin. “Not hedging, but betting heavily against the market.”
"We cannot have this kind of a gambling house...making bets," Levin added. "We cannot allow this to continue."
The Senator announced that the committee will decide after the hearing on Tuesday whether they will refer this matter to the SEC and to the Justice Department for further consideration.
Talk Radio News Service
With top executives from investment bank Goldman Sachs set to testify Tuesday in front of a Senate Government and Homeland Security subcommittee, Sen. Carl Levin (D-Mich.) today showcased approximately 500 pages of documents that illustrate how the scandal-riddled investment bank “repeatedly put its own interests and profits ahead of the interest of its clients.”
“For large fees, Goldman helped run the conveyor belt that dumped hundreds of billions of dollars of toxic mortgages into the financial system,” said Levin, who chairs the subcommittee that will host Tuesday's hearing.
The documents the Senator previewed included internal reports and emails that, according to Levin, show Goldman Sachs betting against the mortgage market throughout 2007, despite the fact that the company has denied such accusations.
“Its own documents show that it engaged in what one top executive described as 'the big short,'” said Levin. “Not hedging, but betting heavily against the market.”
"We cannot have this kind of a gambling house...making bets," Levin added. "We cannot allow this to continue."
The Senator announced that the committee will decide after the hearing on Tuesday whether they will refer this matter to the SEC and to the Justice Department for further consideration.
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