The full text of Senator Levin’s opening “remarks” – if a few verbal punches in the face can be termed “remarks”, that is – is now online here. But here’s a choice “remark”:
These facts end the pretense that Goldman’s actions were part of its efforts to operate as a mere “market-maker,” bringing buyers and sellers together. These short positions didn’t represent customer service or necessary hedges against risks that Goldman incurred as it made a market for customers. They represented major bets that the mortgage securities market – a market Goldman helped create – was in for a major decline.
Goldman continues to deny that it shorted the mortgage market for profit, despite the evidence. Why the denial? My best estimate is that it’s because the firm, Goldmans, cannot successfully continue to portray itself as working on behalf of its clients if it was selling mortgage related products to those clients while it was betting its own money against those same products or the mortgage market as a whole