Today’s grilling of Goldman Sachs Group by the U.S. Senate is likely to be the main event for traders around the world. That could temporarily ease tensions in Europe’s wobbly bond markets, where fears of full-blown contagion from Greece’s debt problems are growing.
Goldman CEO Lloyd Blankfein will tell the Senate Permanent Subcommittee on Investigations that his firm didn’t consistently bet against the residential housing market or bet against clients. Earlier this month, the U.S. Securities and Exchange Commission shocked markets by alleging that Goldman and trader Fabrice Tourre committed fraud by selling a mortgage-related security without telling investors that a hedge-fund betting against the deal had helped create it.
It’s a sure bet that traders in the City, London’s financial district, will be breaking out the popcorn and turning on the TVs when the Senate hearing commences around 10 a.m. Washington, DC-time. The schadenfreude is almost palpable; many of Goldman’s long-time rivals probably feel like the firm hasn’t stumbled during this financial crisis as much as it should have.
For more: Goldman Saga Could Take Heat Off Greece - MarketBeat - WSJ
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