For a second consecutive day, the bipartisan Financial Crisis Inquiry Commission reiterated its request for additional data from Goldman, namely figures regarding the firm's derivatives activities. And for a second consecutive day, Goldman's top executives demurred.
"We generally do not have a derivatives business," David Viniar, Goldman's chief financial officer, told the panel Thursday under oath.
Goldman Sachs holds more than $49 trillion in notional derivatives contracts, making it the third-largest derivatives dealer among U.S. banks, according to first quarter figures from national bank regulator the Office of the Comptroller of the Currency. The commission has found that Goldman is a party to more than 1 million different derivatives contracts, Commissioner Brooksley Born disclosed Thursday.
"We don't separate out derivatives and cash businesses," Viniar clarified under questioning. The derivatives units are "integrated" into the firm's cash businesses, making it difficult for the firm to isolate its derivatives data, he said.
http://www.huffingtonpost.com/2010/07/01/financial-crisis-commissi_n_632345.html
2 comments:
$49 trillion in derivatives? Those running that bank belong in a mental institute, like for people who have nothing left after betting on the ponies.
And the part that is scary is that Goldman does seperate their derivatives from cash businesses which I think many of the investment firms such as Lehman, Merrill Lynch, Bear Stearns and others did the same.
That is why I have been yelling before Obama ever considered to run for Prez: Regulations, regulations, regulations.
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