Goldman Sachs
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Under-fire Goldman Sachs reveals 90% jump in profits | Business
Goldman Sachs's London office. A top lawyer at the bank dismissed the SEC prosecution as a 'he says, she says' dispute The under-fire Wall Street bank Goldman Sachs faced a fresh barrage of public and political outcry today as it revealed a 90% leap in profits in spite of accusations of dishonesty in its dealing with clients, raising the spectre of multimillion dollar bonuses at the height of a battle in Washington over regulatory reform.
As the U.S. housing market began its epic fall nearly three years ago, top executives at Wall Street powerhouse Goldman Sachs cheered the large financial gains the firm stood to make on certain bets it had placed, according to newly released documents. The documents show that the firm's executives were celebrating earlier investments calculated to benefit if housing prices fell, a Senate investigative committee found. In an e-mail sent in the fall of 2007, for example, Goldman executive Donald Mullen predicted a windfall because credit-rating companies had downgraded mortgage-related investments, which caused losses for investors. "Sounds like we will make some serious money," Mullen wrote.
Goldman Sachs e-mails show bank sought to profit from housing do