Meanwhile Chris Kotowski Oppenheimer Co

It is difficult to assess the consequences that will be the judiciary and the media maelstrom that Goldman Sachs today. The most pessimistic evoke a scenario to the Drexel Burnham Lambert, the fifth Bank American investment that went bankrupt in 1990 after a tort of insiders. The most optimistic question first on the consequences in terms of image, like John Dorfman, Chairman of Thunderstorm Capital. "If Goldman loses against the SEC Securities and Exchange Commission, Editor's note, it may have to pay a substantial fine." "But many companies, such as Microsoft or the major tobacco companies, have been legal setbacks and to be given," he yesterday wrote in his column for Bloomberg Agency. For Annemarie McAvoy, Professor of law at Fordham University in New York, the first damage is proven. "Even before we know the outcome of the complaints and investigations against Goldman Sachs, damages are important for the Bank.". His action has fallen, its reputation has been tarnished and she risk losing customers. "Already, a German bank said that it would no longer work with the firm. Gordon Brown, British Prime Minister, has asked the Financial Services Authority to investigate the Bank, and the German Government questioned the desirability of an action.

Financial analysts have begun to assess the impact that could have the SEC complaint. Brad Hintz at Sanford c. Bernstein believes that the scenario of the worst - a negotiated legal agreement between Goldman Sachs and the dry - do its net income to $ 706,5 million. Is not negligible but not major, bearing in mind that Goldman Sachs has registered a net profit of 3.3 billion in the first quarter. Meanwhile, Chris Kotowski, Oppenheimer & Co. believes that "Goldman is vulnerable to other complaints as to very substantial fines". Richard Bove, Rochdale securities, plans for his departure forced the President and CEO, Lloyd Blankfein, and its Chief Financial Officer David Viniar. New York law firms refused to discuss publicly the Affairs of Goldman. No one wants to further irritate the Bank or to do harm to a client involved. "Call it"wall street United"", said one observer.

Complaint partnership

The SEC investigation should be completed by a transaction. This is a complaint with the civilian which may result in a fine. At worst, Fabrice Tourre, the only trader to be specifically cited in the complaint, may be prohibited to work in finance, said a lawyer. For the moment, the Department of Justice has not filed criminal complaint. But it said that the Office of the Manhattan South conducts its own investigation - information which is not public. This hypothesis would be much more serious consequences than a civil complaint. In the meantime, a new partnership has complaint yesterday with a Manhattan Court by a shareholder.

The hearings held today in Washington before a Senate Committee investigating the role of investment during the crisis banks are, a priori, without direct consequence for the Bank, but will have a very important effect in turn. "They are at high risk for Goldman," insists Annemarie McAvoy. It is for the SEC the opportunity to observe the defence of the Bank. The behavior of the elect during the testimony of the leaders of the Bank will also be an influence in terms of image. Finally, all of this can still contribute to strengthen the reform of the financial regulation that must be passed by the upper House. "It may finally is the greatest risk to the business of Goldman Sachs," said Annemarie McAvoy.