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Goldman slumps as CEO retains lawyer

Aug 23 2011 10:49 AFP

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New York - US banking giant Goldman Sachs said on Monday its top executive Lloyd Blankfein had retained a private lawyer in connection with a US Senate investigation into the mortgage meltdown and the global financial crisis.

The company said the chief executive and chairperson had his own lawyer to deal with the possibility of Justice Department questioning in the wake of a report by the Senate Permanent Subcommittee on Investigations.

"As is common in such situations, Mr Blankfein and other individuals who were expected to be interviewed in connection with the Justice Department's inquiry into certain matters raised in the PSI report hired counsel at the outset," the bank said in an email to AFP.

The Wall Street Journal said Blankfein had retained noted defense lawyer Reid Weingarten, who represented top executives at WorldCom and Enron.

The Journal said the Senate referred some matters in its probe to the Justice Department.

Goldman paid $550m last year to settle a Securities and Exchange Commission probe into deceptive practices in the mortgage securities market.

 
 
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Facebook's intrinsic value
May 23 2012 11:32

When it comes to judging a company’s worth, value investors like Warren Buffett look at intrinsic value. By that measure, Facebook’s shares are worth less than $10. A Reuters analyst breaks down the math. (Reuters)

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