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Jamie Dupree's Washington Insider

Posted: 10:21 p.m. Tuesday, April 27, 2010

Goldman Up One 

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By Jamie Dupree

It wasn't a fun day at the witness table for executives of Goldman Sachs, but when the lights finally went out just before 9pm EDT on Tuesday, there was definitely one metric running in favor of the Wall Street Investment Bank - it's stock price.

Goldman stock ended the day up $1.01 - not bad - when you consider that the Dow Jones Industrials had their biggest drop in almost three months, going down 213 points.

In a sense, it was a good way to measure how Goldman Sachs did - as they survived their Senatorial Tongue Lashing, even as Senators landed a good number of jabs and body blows on Goldman CEO Lloyd Blankfein and some of his past and present lieutenants.

But let's face it - what will be remembered most from this hearing?  Can you boil it down to one contentious exchange that will hold the attention of the American people and galvanize them into action?

Probably not.  

Nope, what everyone will remember about this hearing was how "shitty" it was.

That word - which should make the 6th grader in all of us giggle nervously - was found in an internal Goldman Sachs email, that talked about the quality of a mortgage backed security which Goldman was selling, one that nosedived in value, while Goldman was selling short on the back end to make more cash.

"We heard it today, that this was a "shitty deal", that this was crap," said Sen. Carl Levin (D-MI).

Levin made the Press Gallery chuckle repeatedly, as he used the-word-that-rhymes-with-ditty about a dozen times during the nearly eleven hour hearing, though it seemed like more than that.

Also joining in the fun was Sen. Claire McCaskill (D-MO) and Sen. John Ensign (R-NV), who both dropped the S-bomb in the Senate hearing room, sending their expletive un-deleteds out on national TV on both CSPAN and CNBC.

Democrats will certainly find ammunition in the hours of answers to bolster their calls for action on Wall Street Reform, but it wasn't immediately evident that the Goldman Grilling would make a difference.

As for the financial reform bill, the Senate will vote again today on breaking a Republican filibuster that is preventing even an official start to the Wall Street Reform debate.

GOP Senators say it's their last chance to have an impact on the bill, as they demand changes that would include things like new regulations on Fannie Mae and Freddie Mac.

And unless there is some deal made by lunch time, it will be three straight votes that fail, with a fourth scheduled for Thursday.

 
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