The idea that Lloyd Blankfein could be convicted of a criminal offence over Goldman Sachs’ activities leading up to the 2008 financial crisis still seems far-fetched to me, although it clearly worries Goldman’s investors.
The fact that Goldman’s chairman and chief executive has hired a prominent defence lawyer to deal with a US Justice Department investigation into the bank led to its shares falling nearly 5 per cent on Monday.
The most plausible charge – although none has been brought – would be perjury over Mr Blankfein’s evidence to a Senate committee. Senator Carl Levin has accused Goldman executives of being misleading by denying they had “a big short” on mortgage-backed securities. Read more