The Raw Story
By Andrew McLemore
Wednesday, April 7th, 2010
As part of its annual report for 2009, Goldman Sachs — the most powerful and profitable bank on Wall Street — included an eight-page letter to its shareholders that denied the many claims of mismanagement leveled at the company while thanking the federal government for its “indispensable role” in benefiting its shareholders.
“Goldman Sachs is grateful for the indispensable role governments played and we recognize that our firm and our shareholders benefited from it,” the letter stated.
The company had a terrific year in 2009 because of frequent government intervention, but refused to acknowledge responsibility for the crisis that led to an economic meltdown.
Foremost among its denials was the company’s vigorous defense of mortgage derivatives trading. In other words, Goldman Sachs never “bet against” its clients, according to the letter, which also stated that the company did nothing wrong with respect to AIG, took steps to limit compensation for its top executives, and “embraced new realities pertaining to regulation.”
“Our short positions were not a ‘bet against our clients,’” Goldman Sachs said in the letter. “Rather, they served to offset our long positions. Our goal was, and is, to be in a position to make markets for our clients while managing our risk within prescribed limits.”
Goldman Sachs is one of several banks bailed out by the federal government that are using the reporting season to try to repair their battered image.
link – http://rawstory.com/rs/2010/0407/letter-shareholders-goldman-sachs-denies-wrongdoing-grateful-govt-money/