Goldman: creative non-compliance

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FT Alphaville » Goldman accused of hindering crisis probe.

The continuing contempt of banks for regulation becomes clearer by the day. as the FT notes:

The US Financial Crisis Inquiry Commission accused Goldman Sachs on Monday of an “abysmal” response to requests for information and said it had issued a subpoena to compel the bank to provide documents and executives for interviews, reports the FT. The commission said Goldman had failed to answer some questions while providing an indigestible 5 terabytes of data – equivalent, to 2.5bn pages – in response to others.

The Guardian noted:

The chairman of the US body probing the causes of the financial crisis accused Goldman of "mischief-making" by delivering billions of pages of impenetrable information instead of the answers requested about its involvement in toxic derivatives, securities and market-making.

"We did not ask them to pull up a dumper truck to our office and dump a bunch of rubbish," said Phil Angelides, a California Democrat who chairs the commission. "We asked them for very specific documents."

Angelides said Goldman had provided five terabytes of information – roughly equivalent to 2.5bn pages of documents – but the content was offered "in a manner clearly not designed to allow us to determine the information we required".

He added: "This is not a misunderstanding. This has been a very deliberate effort over time to run up the clock."

The answer is available to Congress: block all government contracts for Goldman.

Ultimately threaten to remove its banking licence.

They can be told who is boss.