Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Goldman Sachs: 7 power players

Lloyd Blankfein, Fabrice Tourre and 5 other Goldman Sachs managers appeared on Capitol Hill to defend the company's mortgage market moves.

1 of 7
Lloyd Blankfein
Chief Executive Officer and Chairman

"It was one of the worst days in my professional life."

That's how Blankfein describes April 16 -- the day the SEC brought fraud charges against Goldman Sachs and unleashed a firestorm around Wall Street's top investment bank.

Defiant since then, Blankfein insists that Goldman Sachs did not bet against its clients in a securities package tied to subprime mortgages. At his appearance before the Senate's Permanent Subcommittee on Investigations, he said the firm lost money -- to the tune of about $1.2 billion -- from the housing bust.

"We didn't have a massive short against the housing market, and we certainly did not bet against our clients. Rather, we believe that we managed our risk as our shareholders and our regulators would expect," Blankfein said in his opening statement.

Internal Goldman Sachs e-mails released by a Senate subcommittee over the weekend, however, describe what critics call the "big short."

"Of course we didn't dodge the mortgage mess," Blankfein told company executives in an e-mail dated Nov. 18, 2007. "We lost money, then made more than we lost because of shorts," he said, referring to trading bets that pay off when a bond drops in value.

NEXT: Fabrice Tourre
Email | Print | Share
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Last updated April 28 2010: 2:06 PM ET
Goldman execs fire back Goldman Sachs endured a fierce attack from lawmakers Tuesday about their business dealings. More
4 tough questions for GoldmanGoldman Sachs' moment of public flogging is here. More
The other side of Goldman's trades From electricians to municipal libraries, those who bought some securities packaged by Goldman Sachs wound up on the losing end. More
Special Offer