Goldman Sachs executives head to Washington - WAOW - Newsline 9, Wausau News, Weather, Sports

Goldman Sachs executives head to Washington

WASHINGTON (ABC)-- The chief of mega-bank Goldman Sachs is set for a grilling from Senators Tuesday, the first time since his firm was charged with fraud.  Tuesday's showdown comes just as congress is considering the most sweeping new regulations for Wall Street since the Great Depression.

In arguing their case for the most sweeping new financial regulations since the Great Depression, lawmakers will question the Wall Street bank that many consider exhibit A.

Senator Carl Levin, a Democrat from Michigan, says, "Goldman profited while the market dropped, not to mention the damage that was done to the U.S. economy."

Testifying before a Senate committee, Goldman Sachs CEO Lloyd Blankfein will deny SEC charges that his bank misled investors, selling toxic mortgages purposely bundled to fail.  Blankfein will also have to explain internal e-mails about his bank, allegedly positioning itself to make a fortune during the mortgage crisis, when its investors lost a billion dollars. 

Gregory Zuckerman, author of "The Greatest Trade Ever," says, "This is one of the first times you can actually peel off the veneer and see what goes on beneath Goldman Sachs. He's going to have to address some of that and that's relatively rare."

In trying to push through President Obama's financial reform plan, a united Republican front in the Senate Monday blocked democrats from getting the 60 votes they need to move ahead.

A new ABC News-Washington Post poll finds two-thirds of American support stricter bank regulation of banks. 

While Goldman's testimony is sure to be uncomfortable for its executives, it might also be uncomfortable for some lawmakers.  Sachs has given $31 million over the last 20 years in political donations, much of it to Democrats.

Online Reporter: Jill Courtney

Powered by Frankly