Goldman Guys: Playing It Smart

Posted by Gabriella Stern on April 27, 2010
Investment Banking, Securities & Exchange Commission

Let’s say you’ve been called to testify before a Senate committe after the SEC has charged your employer with fraud. Do you shift into tearful Oprah confessional mode? Or do you answer minimally? Duh! The senators feigning outrage that the Goldman guys aren’t fessing up are, well, feigning outrage. They’re accusing the Goldman bankers of dodging questions but I actually think the bankers are playing it straight, and smart: when they sold products they weren’t functioning as investment advisers to buyers. They were selling products that didn’t come with warranties – these weren’t vacuum cleaners.

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