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- White House Now Doesn’t Dispute Details of Trump's Call with Army Widow
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- Guggenheim Partners ‘Bank Wrecker’ Could Get $100Mn Exit Package
- Proposed Arbitration Rule Change: For Customers Dealing with an Inactive Firm or Associated Person
- This Family Bet It All on Bitcoin
- Clearinghouses Pass CFTC Liquidity Stress Tests
- President Trump Admits He’s Trying to Kill Obamacare. That’s Illegal.
- Trump Plunges Down List of ‘America’s Richest’
- Is Trump’s “Foreclosure King” in Over His Head?
- FBI Arrests NCAA Basketball Coaches and Adidas Rep in Bribery Probe Involving Recruitment
- Equifax CEO Steps Down Amid Hacking Scandal
- Litigation Costs to Rub Salt in RBS Investor Wounds
- RIAs Poised to Land Wirehouse Recruits - Dan Jamieson
- Citibank and U.K. Affiliate to Pay $550K Penalty for Swap Data Reporting Violations - CFTC
- AIG to Restructure into 3 New Units, Marking CEO's First Big Move
- Accounting Firm Deloitte Says It Suffered Cyberattack (subsc reqd)
- Upcoming FINRA Board Meeting and FINRA360 Update
- Elizabeth Warren Lifts Hold on Trump DOJ Antitrust Nominee
- Bigger Mergers Narrow Indy Reps' Options, Alter IBD Channel - Dan Jamieson
- Dentons to Merge with U.K.'s Murray & Spens
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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.