Ok, FINALLY, after almost 11 hours, the Goldman hearing is over.In sum, Goldman wins. Its stock was soaring, so there’s one piece of evidence.
The Senators took up SO much time; there’s another piece. And the Senators got frustrated, whereas, the Goldmanites didn’t.
Instead, the GSers played confused, like the Senators didn’t get it. In the end, that is really how it came across. The Senators didn’t entirely seem to know what they were talking about.
Here are the points we think the Senators DID win on, however
- Tourre back-tracked. At first he said ACA “only used half of Paulson’s selections.” Then he says actually, Paulson selected a “small percentage,” then his colleague (Birnham?) corrects him and says that’s wrong. Then Tourre says he doesn’t remember the percentage that was recommended by Paulson. Then he says it was “more than a few.”
- Goldman played dumb too often. Seriously, Blankfein? You don’t know whether GS uses SIVs? And you separate your prop trading and client trading? We beg to differ.
- The emails are pretty incriminating. No one will remember the defence. They will, however, remember Goldman saying, “shitty deal” and then selling it to investors.
The Senators’ losing points:
- The Senators completely lost on the “you shouldn’t sell crap” argument. There just isn’t a worthwhile argument there. If someone wants to buy it, it’s basically by definition NOT crap because someone values it.
- Blankfein made a strong argument for there being no need to disclose to investors the position Goldman is or isn’t taking against them. Basically – They don’t care, nor should they care.
- The Senators were too stuck on the point that “what GS did is ethically wrong.”
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