Goldman execs grilled at hearing

Executives at Goldman Sachs admitted that the industry made mistakes, but denied responsibility for the economic downtown at Tuesday's Senate hearing.

Executives at Goldman Sachs admitted that the industry made mistakes, but denied responsibility for the economic downtown at Tuesday's Senate hearing.

The five-hour hearing gave senators time to question the industry's involvement in the the subprime mortgage crisis, with Salon noting the senators focused on e-mails sent by Goldman employees that referred to the company's financial products as "junk."

ProPublica writes:

In the court of public opinion, however, bets against desperate homeowners aren't the best PR for companies like Goldman, especially when they're accused of betting against their own clients. The investment bank is still trying to stave off waves of public rage following news of the SEC's fraud charges filed two weeks ago.

Goldman reportedly hired Mark Fabiani, a Democratic consultant, to help the firm navigate the crisis and has been positioning CEO Lloyd Blankfein in the public, a move that seems to counter Goldman's history of secrecy.

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