Saturday, August 11, 2012

Senator not letting up on Goldman


Leading Wall Street critic Sen. Carl Levin is not backing off his criticism of Goldman Sachs for its “deceptive and immoral” behavior in the lead up to the financial crisis, despite the Justice Department announcement on Thursday that it would not pursue criminal charges against the banking giant and its employees. Not according to a report in politico.com.

The Michigan Democrat, who chairs the Senate Homeland Security investigations subcommittee, spearheaded a two-year investigation, released in April 2011, that concluded the Goldman Sachs Group Inc had tried to profit from the mortgage crisis by selling risky mortgage securities to clients while also betting against the market.

Levin on Friday said the DOJ’s decision to refrain from prosecuting the Wall Street firm puts even more of an onus on financial regulators to write up tough new rules required by the 2010 Dodd-Frank law to prevent the kinds of trading activities that the senator’s subcommittee said were so repugnant….


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