April 27th, 2010
08:58 AM ET
12 years ago

Blankfein: Goldman didn't bet against investors

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2010/images/04/20/art.sachs.gi.jpg caption="Goldman Sachs CEO Lloyd Blankfein will testify Tuesday that his firm didn't mislead investors and didn't bet against the housing market."]NEW YORK (CNNMoney.com) - Goldman Sachs CEO Lloyd Blankfein will testify Tuesday that his firm didn't mislead investors and didn't bet against the housing market, according to his opening remarks released Monday.

"We didn't have a massive short against the housing market and we certainly did not bet against our clients," Blankfein said in remarks prepared for Tuesday's testimony, which he will give before the Permanent Senate Subcommittee on Investigations.

Goldman Sachs (GS, Fortune 500) is accused by the Securities and Exchange Commission of failing to tell investors that hedge fund Paulson & Co. helped select securities for a portfolio that it was also betting against.

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Filed under: Goldman Sachs
soundoff (16 Responses)
  1. terry,va

    This is all a dog and pony show for Obummie and the dumbocraps. Goldman Sachs has to sit still for the wood shedding for a few days. They will get their pay back for being good boys when the cap and trade bill goes through. Goldman Sachs people have not only give Obummie one million dollars but a lot of other dumbocraps money as well. Goldman Sachs people and Fannie and Freddie Mac are in the inter circle with Obummie on the cap and trade bill as well. Obummie and his band of fools are as crooked as a barrel of fish hooks.

    April 27, 2010 09:13 am at 9:13 am |
  2. Nadeem

    This is a joke, standing together for the purpose of standing together is a joke. We are becoming a British style party system. Ironically the Tea Party Movement is suporting a model that the original Tea Party was against, putting party before country, party before citizen. That is what the GOP appear to be doing.

    April 27, 2010 09:31 am at 9:31 am |
  3. D.

    Goldman did not bet against investors, the government with its healthcare bill is betting against its citizens!

    April 27, 2010 09:41 am at 9:41 am |
  4. Sebastian

    Your chickens have come home to roost, sir.

    All those exorbitant bonuses paid to snot nosed, brats right out of school who have no work experience and who PRODUCE NOTHING of value to society mean that the world at large has Zero sympathy now that you need it.

    You don't have a right to profit while the rest of the country suffers and you should have displayed some ethics and tact.

    Wall Street exists to serve the needs Main Street for capital. If they are not facilitating the growth of jobs, businesses in INDUSTRIES that MAKE SOMETHING, they are of ZERO use to society.

    April 27, 2010 09:44 am at 9:44 am |
  5. Sniffit

    If this is true, then GS has nothing to worry about, right? So they should cooperate fully with the investigation and discovery procedures and provide all the information, documentation and depositions the SEC seeks....after all, if what he says is true, then all of it will clearly exonerate GS. Case dismissed!

    HAHAHAHAHAHA...and monkeys might fly out of my butt.

    April 27, 2010 09:48 am at 9:48 am |
  6. Julia- Idaho Native American

    We must have regulations for Banks and lending companies, do not forget the past, remember Nazi Germany and all the American companies that supported Hitler, without the help of these corporations, Hitler would not have been able to cause the suffering of millions. You can look this up on the internet, just go to google, and type in "American Corporations that funded Nazi Germany." You will be totally shocked at the results of your search.

    April 27, 2010 09:58 am at 9:58 am |
  7. Cosmo

    I not sure if anyone is going to believe you, Mr. Bankfiend. Maybe you can explain how much derivatives add to the the economy and how the American people should be grateful to Wall Street for having them.

    April 27, 2010 10:10 am at 10:10 am |
  8. Fed Up

    Is this guy a politician? He sounds like them.

    April 27, 2010 10:11 am at 10:11 am |
  9. AFR531

    Pete Rose didn't bet against the Cincinnati Reds.

    April 27, 2010 10:17 am at 10:17 am |
  10. Annie, Atlanta

    I don't know what the answer is as to how these folks are ultimately dealt with, but am certainly hoping to see some of them go to prison for what they did not only to us but to the entire world economy, all for the sake of massive amounts of $$$. Aren't there laws against this?

    April 27, 2010 10:17 am at 10:17 am |
  11. El Gordo

    Corporate culture says that one should tell others that which will result in their cooperation. Whether it is true or not is irrelevant. Truth, after all, is just a matter of opinion.

    So I don't expect to hear from these executives what they actually think. Corporations have a different truth for every audience. They tell consumers one thing, investors something else, employees yet another truth, and government something else altogether. The corporation in this global market has morphed into a kind of idiot-savant. It does one thing very well (sell product) and everything else very badly.

    They cook the books, lie to consumers, hide product defects, sell poison toys to our kids, conceal evidence of any danger to their product, hire scientists to produce bogus research that questions global warming, bribe elected officials, outsource our jobs, reduce our benefits, use deceptive advertising, and tell us over and over about their devotion to "excellence." But, they sell product.

    April 27, 2010 10:17 am at 10:17 am |
  12. Annie, Atlanta

    I forgot the most important part. Why are Republicans siding with the bankers of Wall Street? Are we no longer worthy of their protection?

    April 27, 2010 10:19 am at 10:19 am |
  13. MikeH

    What a scummy man, as bad as Bernie Madoff.

    April 27, 2010 10:29 am at 10:29 am |

    This is largely just more of Obama's strategy of divisive politics. Create a villian and destroy it, making yourself a hero in the process.

    Saul Alinsky would be so proud!

    April 27, 2010 10:44 am at 10:44 am |
  15. mike

    So let me see if we hear from good old Lioyd and that they were up
    front and honest and everything was above board we should be
    happy but isn't the investment firm about keeping track of trends
    and knowing the change in the market thats why they make the big
    bucks people go to them for that if not we would be investing our
    own money and take the risk alone like Bernie good old Lioyd
    thinks that as long as the rules are made by them with no one to
    question it then they can steal as much as they can and laws what
    laws the party of no will be out to protect them

    April 27, 2010 10:50 am at 10:50 am |
  16. S.B. Stein E.B. NJ

    We didn't bet against our investors, our clients. We just didn't tell them that they were going to lose their shirts.

    April 27, 2010 10:54 am at 10:54 am |