2010-04-27 9:59 pm
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As typical for the accused, Goldman started out the hearings with the typical assertion that "these were the rules" and that "everyone does it". Here is a choice excerpt, roughly transcribed, from today's morning:
Levin: "Did you feel that the [rating agency models] were correct?"
Fab: "The mathematics are sound..."
Levin: "No, I asked you if YOU felt that the models are correct."
Fab: "Everything is in the disclosure, and customers are under no obligation to buy..."
Right now Blankfein is on the table, defending Goldman against accusations of conflicts of interest.
CNBC actually puts it pretty well, unusually:
It feels as though the senators and Blankfein are speaking a different language. And one can sense his frustration in their not understanding the role of a market maker or choosing to ignore it, while he chooses to ignore the apparent contradiction in marketing a transaction in which Goldman Sachs [GS 153.04 1.01 (+0.66%) ] was short.
