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-- Goldman Sachs and headlines today to cross hairs really again as they received a subpoena from the Manhattan district attorney's office.
But is this just the start Charlie Gasparino of Fox Business senior correspondent has the latest.
On -- -- just a start just think about that and that the subpoenas to start.
Here's what we know about the situation in of itself I don't think that this is such a big deal this thing from.
Manhattan DA's office bottom line is it's -- it's a scene where it's basically following on the -- to report the report by Carl Levin.
About what it was committee uncovered about Goldman's actions sharing of financial crisis was only is it SOP standard operating procedure -- -- look at it happens all the time.
Follow on investigations.
Because what happened was DO Levin sent his report.
To the big Kahuna and all listed did Justice Department UST OJ.
And that's where this thing gets interest in Justice Department is reviewing some of the allegations in that report with the sources sources -- telling us.
-- on the Fox Business Network and Goldman is expecting this DOJ subpoena.
-- possibly even today we're gonna we're and we're gonna keep updating this as we go on and that's where this thing becomes very problematic for the firm the probes are clearly.
When you start putting them all together like -- said in isolation not a big deal but they're clearly putting pressure on management.
Regulators -- what this is showing and this is a problem that Lloyd Blankfein CEO as.
Regulators and lawmakers are loosing confidence in current management and you know I we'll tell you this.
Inside Goldman Sachs they think of -- Lloyd Blankfein as a savior there's no doubt about that he has.
If the confidence of the board with the people that work -- up like him essentially.
He's vowing to stay in the job despite these probes.
But I'll tell you that you know it's really an interest in situation it's probably not his choice.
Goldman Sachs is not gonna get indicted they're not gonna put this firm at a business too big to fail.
What we usually happens in these things if regulators don't like the way you're doing business even if it's on the borderline of what's fraud or civil fraud just looks bad.
They asked for changes at the top and that's what investors have to look at.
Does that change at the top and I feel -- to widely held stock right.
Does it change at the top is it gonna affect the stock one way or the other I -- -- internally they tell me.
That if there's a chain if David Floyd is forced out Lloyd Blankfein.
-- number two probably go to because their management team Gary Collins then you know they're told about all hell breaking -- in terms of a management struggle.
Is that good or bad for the stock that's for investors to word that's where this is an important story.
The background why me in the chapter close after Goldman settled with the FCC.
It's a great question I you know -- in they've become.
From this I don't think they're the worst actor in the financial crisis if you want -- ask me if you look at you step back you say who is Charlie AIG.
AIG may -- Citigroup horrendous act you know what they did in terms of creating systemic risk for the entire banking system huge place.
You know loaded up with stuff that was really disclosed very well look at what's on the markets today because of what we don't know -- -- on these books Bank of America Merrill Lynch.
Goldman Sachs plays rough.
Plays tough screws their clients over.
Does so basically legally when you read some of the stuff it doesn't look like -- crosses over the line.
But I tell you regulators and and and and and lawmakers to which is -- -- here.
Don't like the way they conducted business they think it crosses he hits that line across is it.
-- -- and plus you know they they have the stigma of being Goldman Sachs connected to government.
Hey Dan Walsh just quit right I mean I you know it's interesting I mean I didn't read that I read Matt type B stuff and I and I -- and I shake my announced they want people.
Get to get so worked up there's a there's lot of mistakes in there he obviously is not.
There's -- a lot of our holster feet.
But you know he's a very good writer and I think -- been in in his defense he kind of in capsule -- what they were they were this big.
Very powerful company.
That in many ways legally gain the system that doesn't mean they committed fraud but they -- game the system and now there is simple and you know you can't change facing this problem you show widely held stocks stock is gone from 175.
I think in January.
To what it is now it's -- another number 1% of -- -- 130.
-- these headlines are gonna keep coming right and they won't stop until this management change.
You know unfortunately -- at a time in TV land but I want to continue the conversation Charlie with you on another date on the particulars of what Goldman doesn't how it.
Sets up its trades in the relationship with AIG and kind of that's sort of angle of this because it -- the business is so fascinating it's a multi facet it's fascinating and it's big time for investors because this is sort of a Bellwether for -- -- And you're in the stock you've got to worry about this stuff and what it means imagine if Medicare I got breaking news channel so I'm sorry no -- I catch I love our conversations thanks.
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