Latest Financial News
[ 2010-06-07 ]
Goldman Sachs accused of disrupting FCIC's probe into financial crisis
London (UK) – 07 June 2010 – The Telegraph - Goldman Sachs
has been accused of “deliberately and disruptively” refusing
to work with the Financial Crisis Inquiry Commission (FCIC)
after employing delaying tactics and attempting to inundate
the panel with millions of pages of documents.
The investment bank, which has now been subpoenaed to appear
before the FCIC as a result of its alleged actions, has also
been accused of “mischief-making” with regards to its
conduct towards the commission after sending it 20m separate
documents. The FCIC has a staff of 50.
The accusations came from Phil Angelides, chairman of the
FCIC, which is charged by the US Congress with finding the
root causes of the crisis and outlining steps to ensure it
does not happen again.
FTSE 100 rises on Singapore growth and bullish note on
GoldmanIt is the latest black mark against the bank, which
is accused by the US Securities and Exchange Commission of
securities fraud in relation to the alleged mis-selling of
derivatives, a charge the bank denies.
Mr Angelides appears infuriated with Goldman’s tactics,
suggesting that the bank is involved in “a very deliberate
effort to run out the clock”. The FCIC must close its
investigation and deliver its report to Congress by the end
of this year.
“We did not ask them to pull up a dump truck to our offices
to dump a bunch of rubbish,” Mr Angelides continued during a
conference call following the issue of the subpoena. “We
should not be forced to play 'Where’s Waldo?’ on behalf of
the American people.”
It is understood that Goldman delayed responding to the
FCIC’s very specific requests for certain documents relating
to the use of derivatives and other matters for months, and
then changed tactic and delivered some five terabytes of
information in the past three weeks.
When asked why the bank might delay its involvement, the
FCIC’s vice-chairman Bill Thomas said: “They may have more
to cover up than maybe we thought or they told us they did.”
Lloyd Blankfein, Goldman’s chairman, appeared before the
FCIC alongside other senior bankers at the start of this
year, and is likely to do so again as a result of the
A Goldman spokesman said the bank has been “committed” to
providing the information the FCIC requested.
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