By Manifesto Joe
At Goldman Sachs, the internal e-mails belie the company's denials. McClatchy Newspapers reported yesterday that:
WASHINGTON -- In an internal e-mail released Saturday, Goldman Sachs chief executive Lloyd Blankfein wrote in November 2007 that the firm "didn't dodge the mortgage mess," but "made more than we lost" by betting against the U.S. housing market.
Blankfein's e-mail, which a Senate investigations panel released with three other subpoenaed company documents, appears to contradict Goldman's denials that it profited from the subprime mortgage meltdown by secretly betting that housing prices would fall. At the same time, Goldman was selling tens of billions of dollars in risky mortgage securities.
Goldman has said that its contrary bets were largely on behalf of its clients.
The release of the documents sets the stage for a confrontation on Tuesday, when Blankfein and six other present and former Goldman executives are scheduled to testify to the Senate Permanent Subcommittee on Investigations, which will begin revealing the results of a yearlong investigation.
Here's a link to the entire McClatchy article.
More from the story:
The disclosure comes a little more than a week after the Securities and Exchange Commission sued Goldman for civil fraud, accusing the firm and one of its vice presidents of allowing a long-time hedge fund client to help select the securities for a deal without telling the investors that the client planned to bet against the securities.
In America, the accused are innocent until proved guilty. Right now, this is just a civil case. But it looks more and more like certain officers of this corporation deliberately defrauded investors.
It would be such a pleasure to see these assholes doing the perp walk, on their way to someplace like The Tombs or Riker's Island, with bond set in the amounts that they defrauded from investors.
But alas, this is America, so I won't be holding my breath. Here, people that rich are especially innocent until proved guilty.
Manifesto Joe Is An Underground Writer Living In Texas.