Senator Levin: Goldman Sachs Got Off Easy
Last week DOJ announced that it would not be pursuing charges against Goldman Sachs for selling mortgage backed securities that it was privately betting would go down in value. DOJ argued that it could not find enough evidence to prosecute Goldman. Senator Carl Levin is not happy.
A day after the department announced its decision, Democratic Senator Carl Levin reiterated in a written statement the criticisms he lodged against Goldman beginning more than two years ago. He called the firm’s actions “deceptive and immoral . . .It misled investors by claiming its interests in those securities were ‘aligned’ with theirs while at the same time it was betting heavily against those same securities, and therefore against its own clients, to its own substantial profit.”
I don’t have the legal mind to evaluate whether DOJ could have made a case here. But Levin is right on when we says that bad behavior took place and it frustrates all of us when we see the most powerful and wealthiest get away with it.