The most mysterious detail revealed in the report on the investigation into the timing of the SEC’s case against Goldman was released is an unnamed “Goldman Manager” who’s mentioned a total of 39 times in the report.
The report refers to him more than almost anyone else – way more than Tourre, for example – in the 82 pages, but he’s never named.
We barely find out anything about him, apart from the fact that he testified for the SEC on January 7th 2010, months before the SEC announced its case.
For example, we read that, in an email to Mary Schapiro after the Goldman Manager testified, Stephen Cohen wrote:
“There is still a question about suing [the Goldman Manager]. I think the staff intends to wells him, but they will not wait to move forward.”
But we never find out why “Goldman Manager” could have been sued.
Pretty much all we know is that in the end, the SEC (it appears anyway), did not sue him.
Is he a whistleblower? Why did the SEC focus on him? We have no idea. We’re curious about his role in this.
Here’s everything we know about him, based on the report, which you can read in full by clicking here.
- The SEC had its first communication with “with a Goldman manager with a possible connection to the Goldman securities transactions at issue” on or around November 2, 2009, when it subpoenad testimony from the Goldman Manager. “The Enforcement staff had sent a subpoena for the Goldman Manager’s testimony on November 2.”
- This so-called “Goldman Manager” got a lawyer, and began “stone-walling” the SEC. The SEC almost gave up trying to hear him, but then something (it’s redacted in the document) happened and they decided they needed his testimony. “On December 4, after numerous attempts to schedule testimony, the Goldman Manager’s attorney represented to the Enforcement staff that, because of the difficulties ofthe case, testimony in December was impossible… In consultation with the Trial Unit, it was determined that we should take testimony from [the Goldman Manager] prior to making our recommendation. We had subpoenaed [the Goldman Manager]’s testimony back in early November but were getting stonewalled.”
- He finally testified on January 7, 2010.
- Waiting to hear his testimony was one of the reasons the SEC waited to announce its case against Goldman. They otherwise might have been more likely to announce the case in December of January. Khuzami testified that there were two reasons that the staff pulled the matter from the Commission Calendar in J “first and foremost,” to get a sworn statement from [redacted company name] in order to strengthen the SEC’s case against Goldman; and secondly, to decide whether or not to charge the Goldman Manager.
- The SEC a Wells notice to the Goldman Manager. The staff gave a Wells notice to the Goldman Manager on January 29, 2010.
- The Goldman Manager met with the SEC again on March 4, 2010. “The Goldman Manager … met with the staff on March 4, 2010.”
- The SEC really cared about making the right decision on whether or not to charge the Goldman Manager. “There “was a phenomenal amount ofthought and care put into the whether to charge the Goldman Manager.”
- The SEC did not charge the Goldman Manager. The SEC only charged Goldman and Tourre. They let Goldman know that they had considered charging the Goldman Manager. “Goldman’s outside counsel, Richard Klapper of Sullivan & Cromwell LLC, [got a message from the SEC] that the SEC had brought charges against Goldman and Tourre and that the SEC had declined to charge the Goldman Manager.”
As you can see, whoever this guy is, he played a large role in this case.
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