A well-connected source tells us that Goldman Sachs has weighed suing journalist Matt Taibbi because of his recent criticisms of the bank, most notably his lengthy piece in Rolling Stone, “Inside The Great American Bubble Machine.”
Goldman told us the rumour is false, but spokesman Michael DuVally called Taibbi’s criticism a “witches’ brew of conspiracy theories.”
Taibbi’s claims have drawn both cheers and jeers, but it clearly upset Goldman. Besides the RS article, Taibbi says Goldman’s repackaging of subprime mortgages was “the essence of securities fraud: you know the stuff is bad, and you’re betting against it” in this WNYC interview last week:
Goldman said in the New York Post that “we reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good.”
To which Taibbi shot back: “Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it.”
We don’t think Goldman would actually sue Taibbi — they want the story to die and it would be totally idiotic — but the guy is clearly under their skin.
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