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Monday, August 22, 2011
Is Blankfein Under Investigation?
Is Goldman Sachs CEO Lloyd Blankfein under criminal investigation?
Reuters first reported that Blankfein has hired noted white-collar defense lawyer Reid Weingarten. (Read this Bloomberg News report.) But why?
This is a development that strongly indicates that Blankfein is individually involved in either a regulatory matter targeting him individually, or a criminal investigation, and that in either case, his interests diverge enough from those of Goldman Sachs to necessitate (either by legal ethics rules governing conflicts of interest, or practicality) Blankfein getting separate counsel to represent his personal interests. A regular civil suit would be handled by Goldman's own lawyers.