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| Senate panel skewers Goldman boss | Senate panel skewers Goldman boss |
| (9 minutes later) | |
| Goldman Sachs' chief executive has denied his bank contributed to the US financial crisis by betting some of its own investment products would fail. | Goldman Sachs' chief executive has denied his bank contributed to the US financial crisis by betting some of its own investment products would fail. |
| Lloyd Blankfein and other executives at the Wall Street giant were accused by a US Senate panel of acting unethically, while Americans lost jobs and homes. | Lloyd Blankfein and other executives at the Wall Street giant were accused by a US Senate panel of acting unethically, while Americans lost jobs and homes. |
| Mr Blankfein said clients came looking for risk "and that's what they got". | Mr Blankfein said clients came looking for risk "and that's what they got". |
| The hearing comes as the US Congress considers the most sweeping reform of the financial industry since the 1930s. | The hearing comes as the US Congress considers the most sweeping reform of the financial industry since the 1930s. |
| MARDELL'S AMERICA The men from Wall Street spend their time rifling through folders of documents in front of them, looking tense and uncomfortable Mark Mardell BBC North America editor Read Mark's blog in full | MARDELL'S AMERICA The men from Wall Street spend their time rifling through folders of documents in front of them, looking tense and uncomfortable Mark Mardell BBC North America editor Read Mark's blog in full |
| During hours of hostile questioning on Tuesday, Goldman executives were accused of marketing some investments that the bank's own staff dismissed as "junk". | During hours of hostile questioning on Tuesday, Goldman executives were accused of marketing some investments that the bank's own staff dismissed as "junk". |
| The hearing room was full of protesters, some wearing striped prison outfits, waving signs reading "shame" and "Goldman banksters". | The hearing room was full of protesters, some wearing striped prison outfits, waving signs reading "shame" and "Goldman banksters". |
| Senator Carl Levin, chairman of the Senate Permanent Subcommittee on Investigations, said Goldman had caused widespread harm to American society. | |
| At the heart of the questioning was how Goldman packaged complex mortgage-backed securities, marketed them to investors - but then bet - or shorted - that these securities would fall in value. | At the heart of the questioning was how Goldman packaged complex mortgage-backed securities, marketed them to investors - but then bet - or shorted - that these securities would fall in value. |
| LLOYD BLANKFEIN Chairman and chief executive of world's biggest investment bank, Goldman SachsEarned more than $70m in 2007 - a record for a Wall Street boss. Took home less than $1m in 2009Told magazine interviewer last year "I'm doing God's work". Profile: Lloyd Blankfein Goldman's 150-year reputation on the line | LLOYD BLANKFEIN Chairman and chief executive of world's biggest investment bank, Goldman SachsEarned more than $70m in 2007 - a record for a Wall Street boss. Took home less than $1m in 2009Told magazine interviewer last year "I'm doing God's work". Profile: Lloyd Blankfein Goldman's 150-year reputation on the line |
| "They're buying something from you, and you are betting against it. And you want people to trust you? I wouldn't trust you," Mr Levin told Mr Blankfein. | "They're buying something from you, and you are betting against it. And you want people to trust you? I wouldn't trust you," Mr Levin told Mr Blankfein. |
| The firm's "misuse of exotic and complex financial structures helped spread toxic mortgages throughout the financial system," said Sen Levin. | The firm's "misuse of exotic and complex financial structures helped spread toxic mortgages throughout the financial system," said Sen Levin. |
| "And when the system finally collapsed under the weight of those toxic mortgages, Goldman profited from the collapse," he added. | "And when the system finally collapsed under the weight of those toxic mortgages, Goldman profited from the collapse," he added. |
| Mr Blankfein - who often squinted as if puzzled by the questions and was frequently interrupted - strongly denied any wrong-doing. | Mr Blankfein - who often squinted as if puzzled by the questions and was frequently interrupted - strongly denied any wrong-doing. |
| The chief executive said clients had wanted an investment that would give them exposure to the housing market. | The chief executive said clients had wanted an investment that would give them exposure to the housing market. |
| "Unfortunately, the housing market went south very quickly... so people lost money in it", he said. | "Unfortunately, the housing market went south very quickly... so people lost money in it", he said. |
| But that did not mean Goldman had acted improperly, he insisted. | But that did not mean Goldman had acted improperly, he insisted. |
| FABRICE TOURRE 31-year-old executive director of Goldman Sachs InternationalCharged with securities fraud for misleading investorsRan Abacus 2007-ACI, a complex product at heart of regulator's probe. Denies chargesReferred to himself as "the fabulous Fab" in an e-mail Goldman: 'Fab' Tourre's emails Was what they did really wrong? | FABRICE TOURRE 31-year-old executive director of Goldman Sachs InternationalCharged with securities fraud for misleading investorsRan Abacus 2007-ACI, a complex product at heart of regulator's probe. Denies chargesReferred to himself as "the fabulous Fab" in an e-mail Goldman: 'Fab' Tourre's emails Was what they did really wrong? |
| "Our clients' trust is not only important to us, it's essential to us. That's why we are a successful firm," he said. | "Our clients' trust is not only important to us, it's essential to us. That's why we are a successful firm," he said. |
| Mr Blankfein - who said late last year he was "doing God's work" - was the last of seven past and present Goldman executives to testify. | Mr Blankfein - who said late last year he was "doing God's work" - was the last of seven past and present Goldman executives to testify. |
| Former mortgage chief Daniel Sparks came closest to an apology, telling the panel that the bank had "made some poor decisions in hindsight". | |
| London-based bond trader Fabrice Tourre robustly defended himself in his first public appearance since the Securities and Exchange Commission filed civil fraud charges against him and Goldman for allegedly withholding details of a deal from investors. | London-based bond trader Fabrice Tourre robustly defended himself in his first public appearance since the Securities and Exchange Commission filed civil fraud charges against him and Goldman for allegedly withholding details of a deal from investors. |
| Goldman says the SEC allegations are wrong in "fact and law". | Goldman says the SEC allegations are wrong in "fact and law". |
| And Mr Tourre told the Senate panel: "I deny - categorically - the SEC's allegations. And I will defend myself in court against this false claim." | And Mr Tourre told the Senate panel: "I deny - categorically - the SEC's allegations. And I will defend myself in court against this false claim." |
| But neither the hearing, nor Tuesday's market turmoil triggered by downgrades in Greek and Portuguese debt harmed Goldman's share price. | But neither the hearing, nor Tuesday's market turmoil triggered by downgrades in Greek and Portuguese debt harmed Goldman's share price. |
| The bank's shares were up 0.7% at $153.04 (£100) by close of trading. | The bank's shares were up 0.7% at $153.04 (£100) by close of trading. |