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- Canada's CIBC Completes $5Bn PrivateBancorp Buy
- Word ‘Women’ Literally Never Appears in U.S. Senate’s 142-Page Health-Care Bill
- Stephen Pierce, Goldman Sachs Global Head of Equity Markets, To Retire
- Al Gore 'Not Very Smart,’ But Became Filthy Rich Using Simple Investing Formula - Charlie Munger
- U.S. Regulators, Lawmakers Support Volcker Rule Revamp at Hearing
- Morgan Stanley Opts for Frankfurt as New EU Hub
- A New Risk for Goldman, Morgan Stanley in Stress Tests (subsc reqd)
- A Trump Bump for Law Firm of President’s Lawyer - Kasowitz Benson Torres
- JPMorgan, BofA, Goldman, Citi, Wells Fargo Pass Fed's Stress Test
- Blackstone Stock Still Trading at $31 - Its IPO Price From 10 Years Ago
- NJ Resident and NY-Based Global FX Club Charged with Solicitation Fraud, Misappropriation - CFTC
- Senate Republicans Release Plan to Replace Obamacare - The Details
- Berkshire Hathaway Throws $1.5Bn Lifeline to Canada's Home Capital
- Inside Nomura: Day in the Life of a Junior Banker
- Inside Travis Kalanick’s Resignation as Uber’s C.E.O.
- Creative Planning, KS Investment Firm, Spurring Change on Wall Street
- SEC Obtains Judgment Against Attorney Who Defrauded Escrow Clients
- SEC Files Fraud Charges Against Stock Promoters in Market Manipulation Scheme
- Power Lunches and Dinners in New York, London, Washington
- Banks to Cut $1.2Bn in Research Spending, Analyst Jobs - McKinsey
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NEWSLETTERS & ALERTS
DOJ Continues to Investigate Goldman's Role in U.S. Treasury Auctions
[Photo: Goldman NYSE Booth; by Justin Lane / EPA file]
by Howard Haykin
With all the investigations and controversies playing out in Washington, D.C., it’s easy to lose sight of the Department of Justice’s investigation into possible rigging of, or collusion in, the U.S. Treasury auctions.
Goldman Sachs first revealed in 2015 that it was being investigated, in large part due to its remarkable winning streak. The firm won almost all competitive auctions for U.S. Treasury bonds from 2007 to about 2011. Apparently, there are chats and emails that may show Goldman traders sharing sensitive price information with traders at other banks. At least 4 of those other banks –UBS, BNP Paribas, RBS, and Morgan Stanley –received subpoenas last month, an indication that the investigation is progressing. And more subpoenas may be issued, given the fact that there were 20 or so primary dealers who participated in the auctions.
Yet, notwithstanding any new directions that the Department of Justice may take in its investigation, all eyes remain focused on Goldman Sachs. Which can get dicey, particularly for Gary Cohen, Steve Mnuchin and Donald Trump, should any allegations of wrongdoings stick to the firm.
- Gary Cohn, the current director of the National Economic Council for Donald Trump, was President and COO of Goldman during the period under investigation. In that role he oversaw the unit of the firm that submitted bids to the Treasury.
- Steve Mnuchin, another Goldman alumni, is presently Secretary of the U.S. Treasury.
- For Donald Trump, any new scandal – particularly one involving Goldman - would throw havoc into his administration, which relies heavily on Goldman Sachs alumni. A markets scandal would further disrupt Trump’s plans to defang Dodd-Frank and loosen banking regulations.
Stay tuned. In this administration, Truth is stranger than Fiction.