{"id":851,"date":"2011-06-03T09:52:32","date_gmt":"2011-06-03T13:52:32","guid":{"rendered":"http:\/\/www3.law.harvard.edu\/journals\/hlpr\/?p=851"},"modified":"2015-10-02T15:57:05","modified_gmt":"2015-10-02T15:57:05","slug":"goldman-subpoenaed-in-connection-with-its-role-in-housing-crisis","status":"publish","type":"post","link":"https:\/\/journals.law.harvard.edu\/lpr\/2011\/06\/03\/goldman-subpoenaed-in-connection-with-its-role-in-housing-crisis\/","title":{"rendered":"Goldman subpoenaed in connection with its role in housing crisis"},"content":{"rendered":"

Anthony Kammer<\/em><\/p>\n

The Manhattan District Attorney\u2019s Office delivered a subpoena to Goldman Sachs yesterday seeking information relating to the company\u2019s role in the 2008 financial crisis. The New York Times\u2019 DealBook covered the story\u00a0here<\/a>.\u00a0The scope of the subpoena\u00a0is still unreported<\/a>.<\/p>\n

The information request was made in connection with a recent Senate report from the\u00a0Permanent Subcommittee on Investigations that accused Goldman Sachs of\u00a0misleading buyers of mortgage-related investments and further stated that the company had mislead Congress.\u00a0The subpoena comes more than\u00a0two-and-a-half years after<\/a>\u00a0TARP\u2019s passage and\u00a0the AIG bailout, at time when Goldman is under investigation by the\u00a0NY Attorney General\u2019s Office<\/a>\u00a0and the\u00a0SEC<\/a>.<\/p>\n

At the time the Senate\u2019s report was released,\u00a0Carl M. Levin (D-MI), the head of the Permanent Subcommittee on Investigations, also\u00a0recommended<\/a>\u00a0that federal prosecutors consider bringing charges against Goldman CEO Lloyd Blankfein and other employees who testified misleadingly while under oath before Congress last year.<\/p>\n

The New Yorker\u2019s John Cassidy has an\u00a0interesting take<\/a>\u00a0on the case and on possible prosecutions against Goldman\u2019s upper echelons. Cassidy lays out several reasons why piecing together criminal charges will be a difficult task for prosecutors and cites\u00a0Sanford Bernstein analyst\u00a0Brad Hintz<\/a>, who noted that Goldman\u2019s \u201ctoo big to fail\u201d status means prosecutors are unlikely to pursue any measures that would disrupt the larger U.S. economy.<\/p>\n

Hintz\u2019s take symbolizes precisely the thinking and the moral hazard that\u2019s been\u00a0fueling<\/a>\u00a0public<\/a>\u00a0outrage<\/a>against Goldman Sachs since early in the financial crisis. Even if prosecutors hold off on charges, these investigations are likely to provide some much-needed transparency into the operation of the financial system and will likely still have an impact on the way Goldman and the rest of Wall Street conduct business<\/p>\n","protected":false},"excerpt":{"rendered":"

Anthony Kammer The Manhattan District Attorney\u2019s Office delivered a subpoena to Goldman Sachs yesterday seeking information relating to the company\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false,"_members_access_role":[],"_members_access_error":""},"categories":[2],"tags":[],"class_list":["post-851","post","type-post","status-publish","format-standard","hentry","category-blog"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/peZQka-dJ","_links":{"self":[{"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/posts\/851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/comments?post=851"}],"version-history":[{"count":0,"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/posts\/851\/revisions"}],"wp:attachment":[{"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/media?parent=851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/categories?post=851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/journals.law.harvard.edu\/lpr\/wp-json\/wp\/v2\/tags?post=851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}