We didn’t do anything wrong - OJ
Last week turned out to be a good one for Goldman Sachs. The Justice Department closed a criminal investigation of the firm and its chief executive, Lloyd C. Blankfein, and the firm disclosed that the Securities and Exchange Commission had decided not to pursue a civil fraud case related to a subprime mortgage deal.
When the story of the financial crisis is finally written, this may turn out to be the denouement of the government’s investigations of Wall Street for potential wrongdoing that contributed to the financial crisis in 2008.
The criminal investigation was prompted by a referral from the Senate’s Permanent Subcommittee on Investigations, based on its 635-page report on the financial crisis that included details on Goldman’s transactions in mortgage-backed securities. The report highlighted potential conflicts of interest in how Goldman dealt with its clients and questioned whether Mr. Blankfein testified truthfully at an April 2010 subcommittee hearing when he said that the firm did not have a “massive short” position to bet on a decline the housing market.
In announcing the closing of the investigation, the Justice Department said that “based on the law and evidence as they exist at this time, there is not a viable basis to bring a criminal prosecution.”
Senator Carl Levin, Democrat of Michigan and chairman of the Senate subcommittee, expressed his displeasure at that outcome, noting that “whether the decision by the Department of Justice is the product of weak laws or weak enforcement, Goldman Sachs’s actions were deceptive and immoral.”
Source: Dealbook - NYtimes