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Scenes From The Goldman Sachs Hearing

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Scenes from the Goldman Hearing

Top Goldman Sachs officials defended their conduct in the financial crisis on Tuesday before the Senate Governmental Affairs Investigations Subcommittee. They flatly rejected the Securities and Exchange Commission’s fraud allegations against the firm, .The following is a look at some of the more dramatic moments in the hearing.
Photo: Getty Images

Top Goldman Sachs officials defended their conduct in the financial crisis on Tuesday before the Senate Governmental Affairs Investigations Subcommittee. They flatly rejected the Securities and Exchange Commission’s fraud allegations against the firm, made in a civil suit filed earlier in April.

The following is a look at some of the more dramatic moments in the hearing.

Posted April 27 2010

Media Circus

From the outset the hearing was expected to be a media circus. The SEC suit against Goldman Sachs comes just as financial regulatory reform legislation is being debated on the Senate floor.In addition the banking sector, which has stepped into profitability after receiving government aid two years ago, is increasingly an object of public scorn.
Photo: Justin Solomon

From the outset the hearing was expected to be a media circus. The SEC suit against Goldman Sachs comes just as financial regulatory reform legislation is being debated on the Senate floor.

In addition the banking sector, which has stepped into profitability after receiving government aid two years ago, is increasingly an object of public scorn.

Sen. Carl Levin

"You knew it was a sh**ty deal and that's what your e-mails show … How much of this sh**ty deal did you continue to sell to your clients?"- Sen. Carl Levin, committee chairman, referencing an internal Goldman Sachs email using the above adjective to describe a financial product.
Photo: Getty Images

"You knew it was a sh**ty deal and that's what your e-mails show … How much of this sh**ty deal did you continue to sell to your clients?"

—Sen. Carl Levin, committee chairman, referencing an internal Goldman Sachs email using the above adjective to describe a financial product.

Blog: How many times did Senator Levin say "Sh**ty deal"?

Lloyd Blankfein

"Had we known, we would have been massively short the market instead of just getting short equal to what our longs were."

—Goldman Sachs CEO Lloyd Blankfein told the Senate subcommittee that the company is not "that smart" as to have predicted the housing crisis and also maintained "people trust us."

Protestors

—Protesters’ chant before the hearing. Demonstrators from Code Pink for Peace hold photographs of Lloyd Blankfein, chairman and CEO of The Goldman Sachs Group, and demand he be jailed with other executives before a hearing of the Senate Homeland Security and Governmental Affairs Investigations Subcommittee. The subcommittee is investigating the role of investment banks during the Wall Street financial crisis.
Photo: Getty Images

"Fabulous Fab is not so fab when he takes from the poor."

—Protesters’ chant before the hearing. They hissed at times during the testimony.

Fabrice Tourre

Fabrice Tourre
Photo: Getty Images

"I deny—categorically—the SEC's allegation and I will defend myself in court against this false claim."

—Fabrice Tourre, a 31-year-old trader at Goldman and the only company official directly accused in the SEC suit against the firm brought earlier in April.

Read more: Fabulous Fab’s Conflicted Love Letters

Wanted: Lloyd Blankfein

Activists hissed at times during the testimony.
Photo: Getty Images

"We want to see these guys behind bars."

Demonstrators from Code Pink for Peace hold photographs of Lloyd Blankfein, chairman and CEO of The Goldman Sachs Group, and demand he be jailed.

Sparks and Birnbaum

.” —Daniel Sparks, head of Goldman Sachs' mortgage department from 2006-2008. He and Josh Birnbaum, another Goldman executive, were also grilled by the Senate committee.
Photo: Getty Images

“Anybody participating in (a deal) should look at the assets themselves.”

—Daniel Sparks, head of Goldman Sachs' mortgage department from 2006-2008. He (left) and Josh Birnbaum, another Goldman executive, were also grilled by the Senate committee.

Senators Collins and Levin

—Senator Susan CollinsShe also suggested that the Goldman executives were stonewalling, to which, committee chairman Levin remarked that the rest of the committee that "We're going to stay here as long as it takes to get the answers. So there may be a strategy, and I just noticed very much the same thing that Senator Collins did about the refusal to give answers and long delays in those answers, but it's not going to work. We're going to stay here as long as it takes to get this information for
Photo: Getty Images

"Mr. Chairman, I think it's very clear what the Goldman executives meant, and I, too, am baffled that they continue to maintain that they did not have an overall short position."

—Senator Susan Collins

She also suggested that the Goldman executives were "stonewalling", to which committee chairman Levin remarked that:

"We're going to stay here as long as it takes to get the answers. So there may be a strategy, and I just noticed very much the same thing that Senator Collins did about the refusal to give answers and long delays in those answers, but it's not going to work. We're going to stay here as long as it takes to get this information for the public."

Senator John Ensign

Senator John Ensign (R., Nevada), taking offense at gambling on Wall Street being compared to playing the casinos in his state.
Photo: Getty Images

"Wall Street is much more dishonest. They change the odds while you're playing,"

Senator John Ensign (R., Nevada), taking offense at gambling on Wall Street being compared to playing the casinos in his state.

Goldman Sachs Power and Peril

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