The main event in Washington today is a showdown between Goldman Sachs and
Congress. It comes 10 days after the SEC accused Goldman of fraud and
members of the Senate Permanent Subcommittee on Investigations will do
their best to depict the bank as an "arch-villain" of the financial
crisis. Now, as Goldman's prepared remarks circulate, pundits anticipate a testy
stand off. Will honesty avail the despised bank? How will Goldman execs
confront the list of allegations?
- They'll Take a Scolding and Brush It Off, writes Alex Altman at Time: "If Blankfein will attempt to navigate the tightrope between aggressively defending the firm and acknowledging the public's concern, Tourre will likely cite the SEC suit in declining to provide any substantive information." Altman quotes a source saying, "It's a little bit like being yelled at by a teacher... You take it, and the next day you move on."
- It's Government's Fault—Not Goldman's Bethany McLean in The New York Times writes, "There are no good guys here. It’s dishonest and ultimately dangerous to pretend that Goldman is the only bad actor. And the worst actor of all is the one leading the charge against Goldman: our government." Though she blames the banks and credit rating agencies, she comes down hardest on regulators and Congress: "In the end, it comes down to this: Goldman Sachs, ACA Capital, IKB Deutsche Industriebank and even the rating agencies never had any duty to protect us from their greed. There was one entity that did — our government."