Thursday, January 13, 2011

Senate to Give Goldman-Sachs a pass on Crony Capitalism

US Senate report to criticize Goldman -FT; Reuters
A U.S. Senate report will highlight alleged conflicts of interest in Goldman Sachs' (GS.N) dealing with clients, the Financial Times reported on Tuesday.

The paper, citing people familiar with the matter, said the Senate permanent subcommittee on investigations could publish a report by the end of the month that would renew pressure on Goldman Sachs by focusing on complex transactions similar to a deal involving subprime mortgage-linked bonds called Abacus.

The Financial Times said Goldman declined to comment. The company could not immediately be reached by Reuters.

On Tuesday, Goldman revealed for the first time how much it made from trading and investing on its own behalf, which many investors have suspected is a key source of the bank's profits, during the first three quarters of the year.

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