Blankfein: Goldman Sachs a ‘Socially Important Casino’
May 1, 2010
(ChattahBox)—Beleaguered Goldman Sachs chief executive Lloyd Blankfein, is out making the media rounds to defend his mega trading firm from charges of defrauding investors, after a contentious senate panel hearing. During the hearing, Blankfein, along with a group of present and former Goldman employees, including the “Fabulous Fab” Tourre, put on a sneering display of arrogance and indifference to the role they played in the economic meltdown. Blankfein, an avid proponent of naked unregulated capitalism, who once referred to Wall Street banking as, “doing God’s work,” appeared on “The Charlie Rose Show” Friday night to offer up more tin-eared defenses of his firm. Responding to criticisms of Wall Street trading, comparing it to a Las Vegas casino gambling with tax payers’ money, he said “it’s a very socially important casino.” Oh, really?
Goldman Sachs is under siege from the SEC for its role in trading junk prime mortgage instruments that were created to fail. Goldman traders sold the “shi**y deals” to investors without disclosing that the firm also planned to bet against the deals. Investors in the deals lost billions. The Justice Department is also investigating the subprime mortgage deals for possible criminal charges.
Soon after the SEC’s civil suit for fraud was filed, a pranoid Blankfein phoned investors, complaining that the lawsuit against Goldman would “hurt America.” And he charged that the government is out “to kill” Goldman Sachs.
Blankfein denied any wrongdoing, insisting Goldman’s market making of exotic instruments out of thin air, performs a valuable service to society. “You could call it a casino, but if it is, it’s a very socially important casino,” said Blankfein to Rose.
Blankfein was also asked to address the controversial, internal employee Goldman emails released by the senate panel, which referred to the subprime mortage instruments, as “shitty deals,” and “junk” with Fabulous Fab” boasting that he sold the junk deals to a few “widows and orphans.” Blankfein admitted that the emails were “callous” but denied that they represented the corporate culture at Goldman.
“There were some e-mails where some people were projecting I would say, at best indifference, and at worst a callousness,” said Blankfein. And he added “it’s inexcusable if 10 people think that way or thought that way.”
Blankfein, the Messiah of capitalism, also acknowledged he has problems communicating his saintly work to the public. Goldman Sachs must improve communication with the public, Blankfein said. “That’s a huge challenge, I would just say it’s my deficiency,” he said.
“We can’t exist in the current state that we’re in and we understand that,” he said. “So we have a lot of work to do.”
Yes, you certainly do Mr. Blankfein.
Photo Credit:REUTERS/Jason Reed