Goldman Sachs criticized by financial crisis panel chief

26 February 2010

Goldman Sachs has been singled out for criticism from Phil Angelides, the chairman of the Financial Crisis Inquiry Commission (FCIC).

In an interview with the Financial Times, Mr Angelides said that he was concerned at revelations uncovered by the public hearing that suggest Goldman Sachs had been "creating and selling securities and then fully betting against them".

He added that recent allegations about Goldman Sachs' behavior in relation to debt swaps carried out on behalf of the Greek government were also a worry for him.

"I find the practice troubling and it raises questions about fair dealing and trust and transparency in the marketplace," he said.

The FCIC is set to begin hearing from further witnesses again today (February 26th 2010) after previously taking testimony from leading figures in the US banking sector.

Mr Angelides said that the commission may decide to recall witnesses such as Lloyd Blankfein from Goldman Sachs and Jamie Dimon of JPMorgan Chase as its enquiries continue.

Last month, Mr Blankfein told the inquiry that he believed the lessons of the financial crisis had been learned and such events would not occur again in his lifetime.

By Asim Shah

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