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'Goldman Clearly Misled Their Clients And They Misled The Congress'

A Senate committee just released what may be the last big post-mortem of the financial crisis. Here's the full report; here's a press release. Here's the gist:

...the crisis was not a natural disaster, but the result of high risk, complex financial products; undisclosed conflicts of interest; and the failure of regulators, the credit rating agencies, and the market itself to rein in the excesses of Wall Street.

This sounds familiar — like the report issued by the Democratic members of the Financial Crisis Inquiry Commission. But, unlike that report, this one was bipartisan.

It recommended a number of changes to the system that would go beyond what was in last year's big Dodd-Frank bill. (Reuters has a list of the report's recommendations.)

What's more, Carl Levin, the Democratic senator who co-authored the report, said he wants the SEC and Justice Department to examine whether Goldman violated the law.

"In my judgment, Goldman clearly misled their clients and they misled the Congress," Levin said at a press conference yesterday, according to Bloomberg News.

Here's Goldman's response, via Bloomberg:

...Goldman Sachs denied that it had misled anyone about its activities. "The testimony we gave was truthful and accurate and this is confirmed by the subcommittee's own report," Goldman Sachs spokesman Lucas van Praag said.

For more on the report, see coverage from the NYT, the WSJ and the AP.

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