Remember how the internet exploded yesterday with outrage over that column by Ben Stein indicting Goldman Sachs for being on too many sides of the collateralized mortgage obligation business? Well it turns out that it wasn’t just Charlie Gasparino and a couple of other folks who thought Stein was right about Goldman’s dirty hands—Senate Banking Committee Chairman and Democratic presidential candidate Chris Dodd called on Treasury Secretary Hank Paulson, who ran Goldman before coming to the Treasury, to “address the concerns” raised by Stein’s column.
And he’s not kidding around. "Failure to do so may be cause for a formal investigation,” Dodd said.
Dodd's full statement after the jump.
Sen Dodd questions on Paulson's role at Goldman [Reuters]
"I am deeply concerned about the questions raised by Mr. Stein's story in the New York Times yesterday about the activity of Goldman Sachs in aggressively pushing sub-prime mortgages that they knew to be of concern while simultaneously shorting collateralized mortgage obligations. If these facts are indeed true, the Administration's inaction when this crisis began to emerge earlier this year, is increasingly suspect. It is in the best interest of resolving this crisis if Secretary Paulson, who was leading Goldman at the time in question, addresses the concerns raised by Mr. Stein's article. Failure to do so may be cause for a more formal investigation."