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Heated exchange as CEO of investment bank testifies, protest

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(28 Apr 2010) TRUE DATE CREATED = 28-04-2010 1. Goldman Sachs CEO Lloyd Blankfein being sworn in for testimony at a Capitol Hill hearing, push in to Senator Carl Levin 2. Wide shot of Senate panel 3. SOUNDBITE: (English) Lloyd Blankfein, Goldman Sachs CEO: "The people who were coming to us for risk in the housing market wanted to have a security that gave them exposure to the housing market, and that''s what they got. The unfortunate thing, and it''s unfortunate but it doesn''t, is that the housing market went south very quickly after some of these securities, not all of them because some of them were done early, but they went. And so people lost money in it, but the security itself delivered the specific exposure that the client wanted to have." 4. SOUNDBITE: (English) Senator Carl Levin, Subcommittee Chairman of Homeland Security Committee: "You don''t believe it''s relevant to a customer of yours that you are selling a security to that you are betting against that same security. You just don''t think it''s relevant and needs to be disclosed. Is that the bottom line?" 5. SOUNDBITE: (English) Lloyd Blankfein, Goldman Sachs CEO: "Yes, and the people who are selling it in our firm wouldn''t even know what the firm''s position is." 6. Blankfein sitting before Senate panel 7. SOUNDBITE: (English) Senator Carl Levin, Subcommittee Chairman of Homeland Security Committee: "You are taking a position against the very security that you are selling and you are not troubled?" Blankfein: "Senator, again." Levin: "And you want people to believe to trust you?" Blankfein: "Senator I think people do trust us." Levin: "Why, I wouldn''t trust you. If you came to me and wanted to sell me securities and you didn''t tell me that you have a bet against that same security, you don''t think that affects my thinking?" 8. Wide shot of protesters in prison uniforms with Goldman officials'' names around their necks 9. SOUNDBITE: (English) Senator Claire McCaksill, Homeland Security Committee: ++starts on pan of witnesses++ "We have spent a lot of time going through all these documents, and let me just explain in very simple terms what synthetic CDOs are. They are instruments that are created so that people can bet on them. It''s the la-la-land of ledger entries. It''s not investment in a business that has a good idea. It''s not assisting local governments and building infrastructure. It''s gambling, pure and simple, raw gambling." 10. Witnesses seated at table 11. SOUNDBITE: (English) Michael Swenson, Managing Director, Structured Products Group Trading, Goldman Sachs: "We did not cause the financial crisis, specifically to the mortgage desk, which is what I''m here to speak about. You have two panels in subsequent meetings to speak about that, about the Goldman Sachs and our businesses. We, I do no think that we did anything wrong." 12. Mid shot of clerk taking notes STORYLINE: Defending his company under blistering criticism, the CEO of Goldman Sachs testily told sceptical US senators on Tuesday that customers who bought securities from the Wall Street giant in the run-up to a national financial crisis came looking for risk. Lloyd Blankfein and other Goldman executives were lambasted by lawmakers for "unbridled greed" in an often-electric daylong showdown between Wall Street and Congress - with expletives frequently undeleted. Unrepentant, five present and two past Goldman officials unflinchingly stood by their conduct before a Senate investigatory panel and denied helping to cause the financial near-meltdown that turned into the worst recession since the Great Depression. "Unfortunately, the housing market went south very quickly," Blankfein told sceptical senators. "So people lost money in it." You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/b26ad6044e5469084381560537c68384 Find out more about AP Archive: http://www.aparchive.com/HowWeWork
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Text Comments (180)
entertainment-knone (1 day ago)
Where exactly is this heated exchange? I must have missed it, except, I didn't. Nowhere was there a heated exchange. Stop click baiting this bullshit.
Gabriel Pastorek (5 days ago)
thats a monopoly not gambling
Aaden Diite (18 days ago)
Dickhead
Aaden Diite (18 days ago)
Listen to me
Aaden Diite (18 days ago)
Dumb ass my is 100
Robgoren (23 days ago)
Lloyd Blankfein is a criminal psychopath who should be on DEATH ROW with the rest of society's mass murderers.
Al Issa (29 days ago)
These senators are hilarious!! Go take a finance class at your local library hhhahha
Signal Racer (30 days ago)
Liberal propaganda..... don't explain the issues but create wrong information.
rockit730 (1 month ago)
What Senator MacCaskill doesn't seem to understand is that "gambling" as she calls it is exactly what the stock market is all about. Whether you are buying futures in the corn market, munis in the bond market, short sells of crude oil, common stock, or yes even MBS certificates, it's all gambling. The investor is "betting" that the product he purchases....whatever it is....will appreciate in value the longer he holds onto that security. Gambling? Of course it's gambling. Everybody already knows that.
bipola telly (1 month ago)
baby eating bankers
Barış Peace (1 month ago)
They are true criminals murderers and plunderers on this planet. But they never goes to jail...
Delph 017 (1 month ago)
What a f*cking criminal.
w87g8765 (2 months ago)
TO BE FAIR, as much as i hate Goldman Sachs, you have to admit they didn't solely create the crisis. We all did.
Julian Rajendram (2 months ago)
This is exactly why we need bitcoin
Volkan Kacan (2 months ago)
they dont care ...people dying assholes
Jim Dandy (2 months ago)
Why did the Obama justice department not prosecute these fucking people for outright fraud? Both parties are paid off. Fucking period. Bought and paid for by these cocksmokers. These fucking senators were showboating with no results other than sound bites for their next election. Our government is more monolithic than the cocksuckers like Chris Matthews or that guy Maddow are willing to ever admit. For them it is monolithic when Trump is in charge. But not 5 slamma Obamma. They protected him at all costs. Including paying tax dollars to these criminals. Because of race our media didn't call out one of the most blatant criminal acts by our government while everyone else in this country struggled to survive.
Brin Hauptmann (3 months ago)
...and Trump puts a bunch of Goldman Sachs fucktards into his cabinet. "Draining the swamp".
str3123 (3 months ago)
When you signup for insurance, your insurance agency is making a bet against yours: you bet your car will catch fire and you’ll get reimbursed, they bet it won’t and they’ll get the annual fee. When you buy a stock, a house or any kind of investment it’s the same fucking thing: you buy something because you think it’s gonna raise in value and the person who is selling it to you believes it’s not. Why would it sell it to you otherwise? How fucking delusional can you be to believe a speculation happens to the benefit of both parties? It doesn’t. That’s how the free market works. Why would someone sell you something that’s gonna be valued more than it’s valued today? Because they don’t believe it’ll be (or not enough for the risk it has). They’re betting against it. That’s not rocket science, it’s simple logic and if you’re so retarded not to realize something like this you *deserve* to loose your bets. You should stay miles away from any kind of investment or speculation.
stribika (4 months ago)
Blankfein clearly said those two parts of the business don't know about each other. This is actually mandated by laws signed by these clowns. But who cares, he just keeps going.
Zero Hour (4 months ago)
No wonder this guy has cancer now.. Its coming back to haunt him. Hell is big enough for all these money changers.
Pardeep singh (4 months ago)
It will happen all over again. No one has learned any lesson from this
Pardeep singh (4 months ago)
How the fuck are none of these guys in jail. We woukd be in prison for stealing a choclate bar. Cunts
Alen Saric (4 months ago)
What the senator was saying was nonsense, when I buy a security I could care less of the brokerage firms position on that security. Their job is simply to provide the security to me, not to tell me what to do with it. If you’re an idiot and lose all your money, that’s just how the markets go.
Hugh Mcaleer (4 months ago)
Nobody is standing there with a gun to your head when you take the loan out.use a little common sense.
drkInxgud (4 months ago)
how dumb can they be? ibanks are market makers they have to hedge against positions that they sell or buy. if your a distributor and a client wants to buy 5 tons of apples in 5 months. what you do? you say ok sure . then you go find a farm and make a contract to buy 5 tons of apples in 5 months from them.
CL129 (4 months ago)
None of them know jack shit!
Jay John (4 months ago)
He's smaller then Michael Bloomberg. That's a very small man. Typical Napoleon complex. Napoleon complex" is a theorised condition occurring in people of short stature. It is characterized by overly-aggressive or domineering social behaviour, and carries the implication that such behaviour is compensatory for the subject's stature. The term is also used more generally to describe people who are driven by a perceived handicap to overcompensate in other aspects of their lives.
Signal Racer (4 months ago)
You could well ask the question that why did a Goldman exec fill his tank with oil before placing a bet that oil prices will go up. Senators are trying to sound intelligent and agressive but their knowledge appears inadequate.
Signal Racer (4 months ago)
Senators are clueless.
pantera29palms (4 months ago)
Housing marking, shmousing market...
Peacefull Brown (5 months ago)
Mr. Swenson could become a financial "meme": he's perfect for comics... "sorry we didn't do anything different than what round market rules"... ah ah ah ah ah ah ah ah
Jdt Walters (5 months ago)
0:58 - Yes.... that is what shorting is. 1:40 - What a silly question. Anyone who even sells a security is--in a way--betting against it because they obviously don't think it is worth holding. 2:21 - Any investment has a certain level of risk. I can't stand these ad hominem attacks. If someone else has a really high-risk tolerance and wants to bet against the strength of a specific sector, it isn't your moral prerogative to try and gloss some illegality over top of it.
CRT Mojo (5 months ago)
If you have to lie, cheat, or steal; to run a business. It means your an idiot; and you shouldn't be running a business.
Brian (5 months ago)
lloyd the goat
Stevie SFV (5 months ago)
Straight out of the movie Tin Men with Danny DeVitto . Uncle Lloyd would have been perfect for his part at the commision-hearing scenes. #Goldman #GoldmanSachs
al jefferson (5 months ago)
The primary issue here is that it is very difficult to explain what they've done to an audience of senator's that do not have a background in finance. What's really going on is the firm's principal investment arm are both long and short in mortgage securities. They are short because it is a hedge that would reduce their downside exposure to the cyclical housing market. Secondly, if you think they caused the financial crisis, you clearly don't understand the financial system. The total activity in the mortgage security market was only about $1 trillion, which is a drop in the bucket considering the size of the financial system of about $123 trillion. The reason why such a small amount mattered was due to the excessive amount of leverage (debt) that banks and shadow banks were taking. For an institution that was financed 97% with debt, a 3% drop in asset prices (which could be caused with something as small as the housing market. Additionally, there was a liquidity crunch that prevented some institutions like Bear Stearns from financing themselves (the overnight repo market collapsed). The proper solution is in regulation. You can't prevent banks from taking on risk because they have very low return on capital numbers like 1%, so they have to take on debt to be able to become profitable (debt has no upside and equity does, the leverage amplifies the equity returns) to get a return on equity of 8%. The issue is that there are government incentives for banks to take on leverage like Too Big to Fail and interest deductions from taxes. It is now in the Fed's mandate to ensure financial stability with stress tests, banks are financed more with capital today, and there are liquidity requirements which help to prevent another financial crisis from happening. Anyone who thinks the banks should not bailout systemically important institutions like AIG and Bear Stearns is a moron. You should see how the financial system totally froze when Lehman collapsed. If we did not bailout AIG, there probably would have been another great depression, and you would have wished the Fed bailed them out. The financial system is incredibly important to modern economies because it is the system that determines where capital goes. If capital freezes, you will see a lot of firms shut down overnight. That means people lose jobs and the economy produces less.
Winston Huang (5 months ago)
When someone sells a share of a company, they are betting against it. Does that make anyone who ever sold a security unethical?
Michael Moretti (5 months ago)
All these arsehole politicians show-boating in front of the cameras ... who subsequently voted to hand these arseholes $Billions of tax-payer money.
Not Important (5 months ago)
is this levin guy a moron?... he doesn't seem to understand anything financially related from the couple clips i've seen... yes... it's FUCKING NORMAL to have opposing positions, it doesn't matter a fucking lick what position an entity takes vs what positions its clients take... bonds frequently move opposite of stocks (not always, but just for the sake of the example).... would anyone be stupid enough to question a person who has both stocks and bonds in their portfolio? is this fat slob really the only person they could find to be qualified enough to lead these testimonies? a construction retailer could sell BOTH: items that help you build the house and items that help you accomplish demolition of a house that old fuck is completely clueless
Faceboo Idio (5 months ago)
This is pure inquisition all over again. Fucking Obama. They pretend to care and need a public scape-goat to direct the anger of the people away from themselves. Who is guilty of mortgage collapse you ask? Oh that is Jews.
Faceboo Idio (5 months ago)
Fucking retard, that is how free market works: You sell what you don't want and you buy what you do want. Retire you media-baiting moron.
Manu (6 months ago)
That’s a conflict of interest right there!?!?! Put him in prison and take everything from him, his house, cars, money, shares, everything... from all of them!!!
Et Immortalem (6 months ago)
I really don't give a shit about the investors that bought all the securities shares and lost money in this little game, but I feel sorry for the people who took out the loans thinking they could pay it off and couldn't pay latter and had their house confiscated. Mostly these people were given credit without their understanding of the interest rate, and not only they lose their house but it also harms their credit rate. Its crazy.
Sean Rojas (2 months ago)
Et Immortalem people took out loans knowing they couldn’t afford it. It was just as much as the seller of the loans fault as much as it was the buyer. Yeah they were solicited but to say that it was all on the banks making the loans is false. Just an ugly situation though and very sad that people today are still affected by it.
Lorendrawn (6 months ago)
The way I understood it, the government demanded that the people bail out the banks under the aegis of "Only these bankers have the expertise to put out this fire." You know, the fire that /these bankers/ started! They did this while sitting on the sidelines, giddy at the fact that they got away with foisting all the blame on the banks - who don't care, ensconed in their infinite money factory and already plotting their next moneymaking scheme once the people's trust returns (which it always does) - while leaving the people with the bill.
Patrick Leo Bateman (6 months ago)
Nice how they cut away, when he starts to explain...
Kimster14 (6 months ago)
Taking a position against a security that your selling is not illegal or immoral. If I sell 500 WTI contract at market prices to a willing buyer, but at the same time short WTI, there is nothing to say that I can’t do that. These committee members have no understanding of even the basics of financial markets.
Anoni.mouse same (5 months ago)
They were not selling to their clients but to their competitors.
Chandler Frutiger (5 months ago)
However, you are under a fiduciary responsibility to cater to your clients and that is where it is, in fact, dishonest and wrong. I realize it is important to mitigate risk, but if done so, you should always make it know which side you're taking and that position you're in.
Anoni.mouse same (5 months ago)
+100
Nabil DZ18 (6 months ago)
fk these cock suckers on wall st ...then TBTF my asss
Anoni.mouse same (5 months ago)
This is exactly what the government wants you to think. Congrats on being a best parrot.
Samuel PItchkhadze (6 months ago)
You go buy a watermelon, the guy selling it thinks the watermelon looks a little bruised, he sells it, is he being fraudulent?
Peter Niu (5 months ago)
Samuel PItchkhadze bad analogy mate. In this case the watermelon was actually rotten and the guy is actually meant to be a "watermelon adviser"
Mac Hack (6 months ago)
People in the comments arguing about the bailout. Do you even know the consequence if the government didn't bail out and just left the market to correct itself? Dont try to logic with your lesbian dance therapy degree here,, its economics.. do some research and come to conclusion!
IIAlbertII (7 months ago)
America is a wallstreet goverment.
Zeabat Husseini (7 months ago)
"Copy" your heroes.
B H (7 months ago)
Typical AP....only highlights Democrat senators and their questions....but , of course, no bias. lol.
kh4liqi (8 months ago)
Americans are asleep
norris pg (8 months ago)
yes, senators, a market maker both buys and sells and it is gambling, which the participants know and choose anyway...ask a better question: "are you selling products you know to be flawed in their representation?"
davisoneill (8 months ago)
Look at this criminal goon.
Cy Jay (8 months ago)
"We did not cause the mortgage crisis" Alright well checks out with me, you're free to go sir
John Yon (9 months ago)
All I see is a greedy rat there
PAT123717 (9 months ago)
That Blankfein dude even looks like the prototypical joo. Jews in international banking and financial services are the ones who caused that economic meltdown in 2008/2009.
Thomas Jones (10 months ago)
....what a charade ... Levin pretending to smack-down Lloyd Blankfein who's firm ( Goldman Sachs ) contributes large amounts of money to Levin's democratic party ... careful there Carl ..... too funny ....
Thomas Jones (10 months ago)
... I betcha' Blankfein and Levin " worship " at the same synagogue and rehearsed this charade of a hearing weeks before with an assurance from Levin that no charges would be brought against Blankfein / Goldman Sachs ....
Marcel Dwayne (10 months ago)
It reminds me of The Wolf of Wall Street nobody wanted to snitch until the Captain of the Ship was force to. Our government did absolutely remotely close to nothing to punish or make them suffer consequences, other than added regulations after the damage was deep in the veins of the American Tax Payer. Majority of the debt we will not pay back. Unfortunately, today it has not change at all. Right now their is a stock buble that is roughly 10 times bigger than the last bubble which was the real state buble. Mark my word all of this is just a movie scene. Federal Reserve is responsible for the entire collapse of 2008. They lowered interest rate down and eventually allow banks to borrow money and of course the IRS did absolutely nothing also and SEC plus the FBI. I know the SEC is more civil rather than criminal, but come on men.
simon berche (10 months ago)
lmao murica wants capitalism without its side effects, people didnt have to buy this shit...
David Ferry (10 months ago)
Wish we could just kill those fuckers
Danny Wong (10 months ago)
That’s why you’d sell something, stop pretending to care
godsadog (11 months ago)
Jews.
Jeff Davis (4 months ago)
@godsadog - You know nothing idiot!
Faceboo Idio (5 months ago)
That is the message Obama administration wants everyone to hear. Clear as day. Pick a investment house with Jewish sounding name despite the fact that that firm has Nothing to do with mortgage crisis and financial collapse orchestrated by Big banks and US government pure liberal stupidity.
Steve Yurchak (11 months ago)
Federal Reserve Act of 1913 is when the American people became slaves to these Zionists pigs!! It was the peoples money before this act
Johnny .Bravo (11 months ago)
So few people care to even watch this video to find out why their struggling fat to day and why they have no money. It lands all on the public and their heads hurried in the sand waiting for someone else to do it for them.
T Brockton (11 months ago)
Why are these videos chopped up and cut short? No sense in even watching them.
increase (11 months ago)
the senator is a little retard Goldmann Sachs is doing well
Hermes Chen (11 months ago)
No wonder is fucker is so rich
Hermes Chen (11 months ago)
He is the king of the devil
Dot Rule (1 year ago)
Everytime I watch this and realise how all the big guys get away at the end, i clap my hands ! No wonder America is falling behind China. If this happened there, heads would roll, as in literally fucking roll !!
negromermaid 420 (1 year ago)
Jew bashing a Jew then nothing happens. Just protecting the race.
phatkaveh60 (1 year ago)
Yes they provided a security for the housing market, but that is not the issue, the ISSUE is that they made it seem like a good security, but in reality it was GARBAGE. They committed fraud plain and simple.
Delph 017 (1 month ago)
This.
mataloce (3 months ago)
Finally a comment that makes sense... people here are deffending G&S forgetting that they payed S&P to hold the ratings on CDO's while dumping them...
Dam Son (1 year ago)
SCROLL BACK UP
Ahnaf Ahmad (1 year ago)
Why do senators talk as if they know these things
Teringventje (1 month ago)
Shantanu Kulkarni what has a economist to do with financial products?
Teringventje (1 month ago)
Do u even know who mr Levin is? He knows... lol
Delph 017 (1 month ago)
Why do you talk as if you know better?
jack brandt (2 months ago)
You forgot to take your medication today, didn't you boy? Speaking of descendants, have you been sterilized yet? I'm surprised you even came into existence as I'm sure your grandparents were on the lists when sterilization laws were still on the books in 37 states to prevent more than 3 generations of idiots as Supreme Court member Oliver Holmes most famously stated in Buck v Bell.
fukoffgoogle (2 months ago)
Wow Jack, you are one more link in a long chain of stupid ancestors that preceded you...I hope in the next 300 years you descendants will evolve a bit to add more brain cells to the two you already have. P.S. Your post has so much stupid, hillbilly 'wisdom' that I am truly uncertain if you could be called a homo sapiens.
johnnyfast (1 year ago)
The supremacist criminal cult investigating the supremacist criminal cult. The US government is controlled by these vampires, the people as always are the ones being bled.
bigbullbk (1 year ago)
Golman Sachs: Invest in Mortgages. Customer: Yes I'll invest 1 million Golman Sacks: I'll bet against that 1 million, so either way, If you win I win, if you lose I still win.
cookletsdothis (1 year ago)
If Goldman Sachs tells you to sell-buy. If Goldman Sachs tells you to buy-sell.
karoogus (1 year ago)
it's impossible that they are not in prison...unbelievable
Dreez76 (1 year ago)
There is only one punishment for these people, a bullet.
ba77ar90 (1 year ago)
2:50 Im no fbi agent or micro expression expert but this guy's facial expressions as he says 'I dont think we did anything wrong' says a lot
Jon Jones'barber (1 year ago)
ba77ar90 and hes also very very nervous
Vince P (1 year ago)
This is the result of a country of uneducated morons being manipulated by a handful of lucky amoral and clever few
Enjoy The Decline. (1 year ago)
2:32 He's lying. You did cause the financial crisis.
Nauseating...Disgusting....
Millions lost homes!
William Roggers (1 year ago)
this is criminals ripping other criminals a new asshole.. and the ones doing the ripping watched them do it and knew the whole TIME!!
drafting savant (1 year ago)
sorry but look how crazy that gentleman looks all he can think about is money and he's willing to lie to the entire American public that dude is a traitor and should be jailed
James anonymous (1 year ago)
It's only wrong if you get caught doing it. If you get "Discovered" later, it was just a mistake.
purpurato (1 year ago)
From today https://www.bloomberg.com/news/articles/2017-05-09/blankfein-says-banks-should-be-unshackled-from-volcker-rule
blakeisdope (1 year ago)
It's interesting how clearly these senators don't have a clue what they're dealing with. It was very apparent with Senator McCaksill's useless and ignorant little speech and Senator Levin's lack of knowledge on investment bank corporate structure
Roger Lee (1 year ago)
and GS is still the king of WS. what r u going to do?
XXDJOZXX (1 year ago)
I just love this, people questioning(govt) answering(banks) is two branches of the same evil system. Who gets the end of it, we the people!(our money gone!) as usual. Snakesssssss
Matthew Yang (1 year ago)
from a technical standpoint a financial institution can have multiple branches and have some people selling a security and some others betting against that security isn't that ridiculous. Good luck proving wrong-doings from this. people keep blaming the bankers, and yes these guys are so very much greedy, but the 08 financial crisis was a failure on pretty much every component of the system. If US citizens weren't being so greedy and did not rush to apply for loans they could absolutely not afford, the crisis couldn't have happened. The fact is people are greedy, everyone is greedy, people hate the bankers because the bankers have the instrument to get the most return. If there is anyone that should go to jail, it should have been the Feds people. They were supposed to be the ones to set rules to prevent greedy people doing crazy things, they failed horribly.
Lorendrawn (6 months ago)
I agree! If everyone acts in self interest (bankers, consumers, etc) then the ultimate blame lies with the person who gives these people the freedom to act against the best interests of the system as a whole. If you give your child an ax and he/she chops the legs off the dinner table to get at the cookie jar on top, it's your fault the table is broken!
Kurt Gödel (1 year ago)
Usury should be banned and all userers thrown in jail.
chazz LUCAS (1 year ago)
WHERE IS THE HEAT ?????
boganus699 (1 year ago)
Jewish mafia runs Goldman Sachs.
Dave Lumsden (1 year ago)
And no one ever went to jail for the biggest rip off in US history. Martha Stewart was sent to the big house for insider trading, I guess she wasn't part of the club.
smackedinthejaw (8 months ago)
Goes to show that certain people are nigh on untouchable, or so paid up and connected that people just turn a blind eye.
Anyone that thinks fighting cancer is a task like checking email is a bit crazy. blah blah we didn't do anything wrong mommy and won't do it again...as a business owner who wants to work in an office with sycophants and crazy people.
redeyeguy (1 year ago)
High-functioning antisocial personality disordsr

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