Lloyd Blankfein testified about investment and trading activities of Goldman Sachs and other investment banks involving residential mortgage based securities and related products. In sometimes combative questioning senators asked about electronic mail and other communications by company officers indicating the firm was pushing the sale of risky derivatives while also betting against the products sold to clients. Mr. Blankfein responded by saying that clients came to the firm for risk, “and that’s what they got.”
This hearing was the fourth in a series of subcommittee hearings examining some of the causes and consequences of the recent financial crisis.