The chief executive of Goldman Sachs and other executives from the Wall St powerhouse were due before Congress this morning 10 days after the US Government accused the firm of fraud.
The Senate panel hearing their testimony alleges that Goldman used a strategy that allowed it to profit from the
housing meltdown and reap billions at the expense of clients.
Goldman executives misled investors in complex mortgage securities that turned toxic, investigators for the Senate subcommittee say.
They point to a trove of 2 million emails and other Goldman documents obtained in an 18-month investigation.
Chief executive Lloyd Blankfein says in his prepared testimony that Goldman didn't bet against its clients and can't survive without their trust.
Also due to appear is Fabrice Tourre, a Goldman trading executive who, federal regulators say, marketed an investment designed to lose value. Tourre who famously called himself in a January 2007 email "The fabulous Fab ... standing in the middle of all these complex ... exotic trades he created".
The Securities and Exchange Commission this month filed a civil fraud case against Goldman, saying it misled investors about securities tied to home loans.
The commission says Goldman concocted mortgage investments without telling buyers they had been put together with help from a hedge fund client, Paulson & Co, that was betting on the investments to fail.
The agency also charged Tourre.
Goldman disputes the charges and says it will contest them in court.
