Goldman Sachs was a major contributor to (and beneficiary of) the 2007 subprime mortgage crisis that helped initiate the current depression. The bank then proceeded to heavily avail itself of bailout payments and other monetary assistance from the federal government.
In 2010, the Securities and Exchange Commission (SEC) filed a lawsuit against the company, alleging that it had deceived investors about the nature of one of its products, costing them a total of $1 billion.
Goldman Sachs was defended in the lawsuit by its longtime legal firm, Skadden, Arps, Slate, Meagher & Flom, LLP. One of its advisors on defense strategy was a partner in the firm by the name of Gregory Craig, who had left his job as White House Counsel only months before. When observers raised ethical concerns, some of them pointing out that the Obama Administration prohibits its former members from lobbying it for at least two years, Craig responded by saying, “I am a lawyer, not a lobbyist.” Read the rest of this entry »