Lloyd Blankfein, Chief Executive Officer of Goldman Sachs, will undoubtedly face tough questions when he testifies before a Senate panel following the latest fraud allegations from regulators, according to Financial Times.
Blankfein is reportedly set to appear before the high-powered subcommittee of investigations on Apr. 27 to testify on the firm’s activities leading up to the financial crisis, with political pressure already mounting over risks and remuneration seen on Wall Street.
The Securities and Exchange Commission announced charges against the firm on Friday, accusing Goldman of fraud in marketing collateralized debt obligations in a probe that appears set to spread to European authorities, reports Bloomberg.
The panel has indicated that it intends to investigate the firm’s trading operations and use of complex instruments. Carl Levin heads the panel, and wants to answer questions on how the industry “ran wild” and transformed the American investing into “gambling.” Goldman has denied allegations and is fighting the suit.
