A few months ago Goldman’s virtuous CEO, Lloyd Blankfein, was quoted in an interview with John Arlidge of The Sunday Times of London, saying that He was ‘doing God’s work.’
In the article, “I’m Doing God’s Work.’ Meet Mr. Goldman Sachs,” Blankfein went on to state that Goldman was part of a virtuous cycle allowing that “they have a social purpose.”
But many contend that they are socially challenged.
Goldman executives were on Capitol Hill yesterday to testify about their involvement in failed Abacus; the securitized investment that crumbled when the housing market crashed, shortly after being put together, leaving investors with millions of dollars in losses. Goldman failed to tell investors that the person who put the package together was taking a short position in the investment. John Paulson was betting on its failure even before it was completed.
The recent charges brought by the Securities and Exchange Commission charging Goldman with failure to disclose important details to investors in the Abacus deal could be only the first of many charges that the UnVirtuous Goldman will have to face.