James Cramer: Goldman Has No Defense

You know things look dire for GS when Jim Cramer, an alum and longtime company fan, suggests Goldie is in trouble.

According to the CNBC “Mad Money” host, the release of e-mails from Goldman traders, including Fabrice Tourre, are quite damning.

Cramer told MSNBC’s “Morning Joe” (April 26) that Goldman really has no defense if, as the government alleges, Goldman misled investors when it established a mortgage-backed security in 2007 for a hedge fund client looking to bet against the housing market. And that’s in addition to facing heat from shareholders for not revealing that it received a Wells Notice from the SEC.

“What makes this worse than most situations is that it’s entirely possible this young guy, who’s now holding the whole firm hostage, Fabrice Tourre – it’s entirely possible that he sold it fraudulently [as the SEC complaint alleges].

If he did, then Goldman has no defense.

So, what I would emphasize at this particular moment is that this guy is way too powerful. The hearings are going to go badly. Goldman knew they were going to have a Wells Notice, knew they were going to get prosecuted. They didn’t reveal it. It was totally material. Again they did that wrong.”

You can see the full video here.


Hat tip James Bianco

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