Goldman’s Blankfein readies for Senate testimony: report

Goldman Sachs Group Inc believes that the fraud charges filed by the US Securities and Exchange Commission (SEC) against the bank are politically motivated, the Financial Times yesterday.

According to the newspaper, Goldman chief executive Lloyd Blankfein is eager to fight the case in court.

"He was very aggressive," the newspaper quoted an unnamed person who was in touch with Blankfein.

"He feels that the government is out to kill them, that they are under attack and the whole thing is totally political," and that the SEC lawsuit "hurts America," the person said.

Meanwhile, media reports say Blankfein and Fabrice Tourre, the Goldman employee also named in the SEC case, would testify before a US Senate panel next Tuesday.

Blankfein will answer questions before the Senate's  permanent sub-committee on investigation, which is probing into Wall Street's role in the financial crisis.
In its civil fraud lawsuit on Friday, the SEC alleged that that Goldman created and marketed a synthetic collateralised debt obligation (CDO) called 'Abacus' that hinged on the performance of sub-prime residential mortgage-backed securities (See: Goldman Sachs sued by US regulator for securities fraud).