Monday, August 22, 2011

GOLDMAN SACHS HIRES TOP CRIMINAL DEFENSE LAWYER; SHARES TUMBLE

In late trading, shares of Goldman tumbled nearly 5 percent, knocking $2.7 billion off the firm’s market value, after a report that the firm’s chief executive, Lloyd C. Blankfein, had hired a prominent criminal defense lawyer, Reid H. Weingarten.

Goldman, when confirming the hiring, portrayed it as routine, given the several government investigations faced by the firm. But the sharp reaction in the stock price showed the fragile nerves of investors, who are worried that potential legal liability could damage the firm and its earnings power.

A spokesman for Goldman said executives at the firm were expected to be interviewed by the Justice Department. The agency is conducting an inquiry that stems from a 650-page report produced earlier this year by the Senate Permanent Subcommittee on Investigations. That report said that Goldman had misled clients about its practices related to mortgage-linked securities.
I'D BET THEY DID ILLEGAL THINGS.



I BET THEY GET OFF WITH WHAT IS FOR THEM A SMALL FINE.



SOMETHING LIKE $500 MILLION.

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