Thursday, April 22, 2010

It's Lloyd of Washington next week

By Mark DeCambre and Kaja Whitehouse / Reuters


He wasn't named in the Securities and Exchange Commission's fraud suit against Goldman Sachs, but CEO Lloyd Blankfein nonetheless will find himself on the hot seat about the matter when he goes to Washington to testify before a congressional panel about toxic mortgage securities.

Sources tell The Post that Blankfein has accepted an invitation to testify Tuesday before the Senate Permanent Subcommittee on Investigations, which has collected some 10 million documents, including e-mails, mortgage agreements and detailed blueprints of mortgage securities, from Goldman as part of its probe.

The hearing will mark Blankfein's first public appearance since the SEC shocked Wall Street Friday by filing fraud charges against the gold-plated bank for allegedly hiding from investors the details of a collateralized debt obligation that had been tailor made for hedge-fund king John Paulson.

A Goldman spokesman declined to comment on Blankfein's appearance.
Word that Blankfein is being summoned to Capitol Hill occurs against the backdrop of the bank reporting another stellar quarter, in which profits surged 91 percent to $3.3 billion and revenue jumped by more than one-third to $12.8 billion thanks in large part to its trading operation.


On a side note:

Goldman Sachs banker Fabrice Tourre to testify in Congress

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