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| Senate panel skewers Goldman boss | Senate panel skewers Goldman boss |
| (10 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. |
| 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". |
| 'Banksters' | |
| The highly charged hearing saw fierce argument and occasional obscenities, while protesters, some in striped prison outfits, waved signs reading "shame" and "Goldman banksters". | The highly charged hearing saw fierce argument and occasional obscenities, while protesters, some in striped prison outfits, waved signs reading "shame" and "Goldman banksters". |
| MARDELL'S AMERICA The senators lectured these would-be masters of the universe as if they were school boys caught with their fingers in the jam Mark Mardell BBC North America editor Read Mark's blog in full | |
| Senator Carl Levin, chairman of the Senate Permanent Subcommittee on Investigations, said Goldman had caused widespread harm to American society. | 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. |
| "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. |
| 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 | |
| "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. |
| "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". | Former mortgage chief Daniel Sparks came closest to an apology, telling the panel that the bank had "made some poor decisions in hindsight". |
| 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? | |
| Earlier, Fabrice Tourre - the London-based bond trader named in civil fraud case against the bank - denied misleading investors by selling a financial product that the bank had bet against. | Earlier, Fabrice Tourre - the London-based bond trader named in civil fraud case against the bank - denied misleading investors by selling a financial product that the bank had bet against. |
| Goldman says the charges brought by the Securities and Exchange Commission are wrong in "fact and law". | Goldman says the charges brought by the Securities and Exchange Commission are wrong in "fact and law". |
| Mr Tourre told the Senate panel: "I deny, categorically, the SEC's allegations. And I will defend myself in court against this false claim." | Mr Tourre told the Senate panel: "I deny, categorically, the SEC's allegations. And I will defend myself in court against this false claim." |
| Neither the hearing, nor Tuesday's market turmoil triggered by downgrades in Greek and Portuguese debt harmed Goldman shares. | Neither the hearing, nor Tuesday's market turmoil triggered by downgrades in Greek and Portuguese debt harmed Goldman shares. |
| They were up 0.7% at $153.04 (£100) by close of trading. | They were up 0.7% at $153.04 (£100) by close of trading. |
| Elsewhere at the Capitol, Republicans succeeded for a second day in thwarting moves to debate a bill for sweeping financial reform - the party floated their own proposals. | Elsewhere at the Capitol, Republicans succeeded for a second day in thwarting moves to debate a bill for sweeping financial reform - the party floated their own proposals. |
| With Congressional elections in November, Republicans and Democrats have been urging stricter oversight of the financial sector, and analysts expect a bill to pass eventually. | With Congressional elections in November, Republicans and Democrats have been urging stricter oversight of the financial sector, and analysts expect a bill to pass eventually. |