Congress Set To Fry Calamari On Tuesday

‘God’s Helper’ Sir Lloyd Blankfein and one of his gallant nobles, the Duc De Tourré, are set to testify before a Congressional hearing on Tuesday surrounding the recent SEC fraud charges filed against Goldman Sachs ($GS).  The markets will probably be frozen as participants around the world tune in for the the Squid’s side of the story.

The reception the firm’s emissaries receive will be chilly at best.  Here’s a sneak preview from Michigan Democrat Carl Levin

From the New York Times:

“Our investigation has found that investment banks such as Goldman Sachs were not market makers helping clients,” Mr. Levin said, referring to testimony given by Mr. Blankfein in January. “They were self-interested promoters of risky and complicated financial schemes that were a major part of the 2008 crisis. They bundled toxic and dubious mortgages into complex financial instruments, got the credit-rating agencies to label them as AAA safe securities, sold them to investors, magnifying and spreading risk throughout the financial system, and all too often betting against the financial instruments that they sold, and profiting at the expense of their clients.”

A slew of emails have been released this morning, some of them contradicting what Goldman has said its stance was on the mortgage market in 2007-2008.

Bon Appétit, mes amis.

Source:

Goldman Sachs Messages Show It Thrived As Economy Fell (NYT)