Financial Crisis Commission Threatens To Audit Goldman Sachs


Joe Weisenthal
Business Insider
July 26, 2010

The Financial Crisis Inquiry Commission headed up by Phil Angelides has threatened to audit Goldman Sachs, as it looks for more data on its dealing in derivatives.

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FT:

The commission will not back down from demands for information Goldman’s executives have maintained they do not track, Phil Angelides told the Financial Times.

“We have a deep level of questioning about whether we’re getting the straight scoop here and whether Goldman is working with us on information that they surely have,” Mr Angelides, chairman of the US Congress-appointed commission.

Meanwhile, separately, new documents released by the bank via Sen. Chuck Grassley have revealed a more extensive list of Golmdan/AIG-related counterparties.

Bloomberg:

Goldman Sachs Group Inc. documents show that it depended on banks including Citigroup Inc. and Lehman Brothers Holdings Inc. for protection against a failure of American International Group Inc.

Citigroup, which received the biggest government bailout of any U.S. bank, was Goldman Sachs’s largest provider of credit- default swaps on AIG as of Sept. 15, 2008, according to documents released by Senator Charles Grassley. Lehman Brothers, which declared bankruptcy that same day, is listed as fifth- biggest. Credit-default swaps act like insurance contracts, paying the owner in the event of a default.

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