Will Goldman COO Gary Cohn Face Consequences For Committing Perjury Before The FCIC?

Tyler Durden's picture

Christine Harper, Michael Moore and Bob Ivry have been quite busy today. After poring through the lifetime legacy project of their late colleague Mark Pittman, the trio may have just made a discovery that in a non-banana republic could be enough to at least force a special hearing into whether Goldman COO Gary Cohn committed perjury while testifying to the FCIC on June 30. The culprit: Goldman's (ab)use of the discount window not once, not twice, but five times. Well everyone else was doing it, especially Goldman's insolvent peers like JPM, Merrill Lynch, Bear Stearns, Lehman Brothers, Bank of America, Wachovia, UBS, Credit Suisse and, well, everyone else. So what's wrong with that? Here's what: "Goldman Sachs President and Chief Operating Officer Gary D. Cohn told the Financial Crisis Inquiry Commission June 30 that “we used it one night at the request of the Fed to make sure our systems were linked with their systems, and it was for a de minimis amount of money.” Peter J. Wallison, a member of the Financial Crisis Inquiry Commission, then asked, “you never had to use it after that?” “No, and as I said, we used it on the Fed’s request,” Cohn replied. Alas, that is a lie. And last time we checked, lying to Congress under oath is not quite the right the way to conduct God's work (and yes, a perfectly innocuous "I don't recall" ala David Sokol from his CNBC interview would have sufficed). Alas no: Goldman just had to demonstrate how very immune from the legal process it is, by "risking" its credibility and reputation with the assumption that it is either never wrong, or, like Warren Buffett, that it can never be caught doing wrong. Well, it just was.

More from Bloomberg:

“During the crisis, we tested our systems, including accessing the discount window; the amounts involved were de minimis, and the testing was routine,” Michael DuVally, a spokesman for New York-based Goldman Sachs, said today in an e- mailed statement. “The fact that we tested the system to insure our procedures worked smoothly was made known to senior executives. Routine tests thereafter were considered part of the normal course of business.”

Goldman Sachs and Morgan Stanley (MS) were the largest and second-largest U.S. securities firms until Sept. 21, 2008, when they both won the Federal Reserve’s approval to convert to bank holding companies. The conversion took place about a week after Lehman Brothers Holdings Inc., which was then the fourth-biggest securities firm, filed the biggest bankruptcy in U.S. history.

Congress assigned the FCIC to determine the causes of the financial crisis. The panel released a report in January, along with a 545-page book.

We are confident that the corrupt "representatives" (of Wall Street interests) in Congress will get right on sending out a subpoena to Cohn asking him to explain why he lied under oath. Then again, since this act was nowhere near as criminal as Meredith Whitney telling the sad truth about America's insolvency to the broader population, we feel our confidence waning... waning...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
DoChenRollingBearing's picture

No, and I have not even read the article yet!


EDIT: Just read it, still NO!

JonNadler's picture

Anybody have a summary of the findings that even a moron like Jon Nadler can understand

metastar's picture

Congress is a bunch of pussies, derelict in their duties.

They don't even hold the president accountable for his illegal declaration of kinetic military action (i.e. WAR). They give their power of the purse to the private central bank. They are dangerous given their contempt for the American people.

But hey, we can't get too angry at them. They simply follow the orders and talking points emanating from their corrupted parties. And oh what a PARTY it is, all at the expense of the public.

Like I said, ... PUSSIES!

JonNadler's picture

Didn't Lloyd tell Congress the same thing, that Goldman had used the window only once to test it? The day the testified before Levin about the shitty deal?

So he perjured himself too

rocker's picture

Now your talking my stuff. Lloyd Blankfein and Neel Kashkari surely belong in Jail with the rest of the banksters. 

Holodomor2012's picture

Had he confessed the truth at the time the result would have been catastrophic.  Although it ran counter to every fiber in his being this small white lie bought the country the time it needed to stablize the recovery.  He is a hero of epic proportion.  Someone plant him a statue in Tel Aviv next to Pollard.


btw, free Pollard.  http://www.youtube.com/watch?v=4KUQ0idNEIo

tom a taxpayer's picture

Will Goldman COO Gary Cohn Face Consequences For Committing Perjury Before The FCIC?

No, Gary Cohn will replace GE's Jeff Immelting-Nuclear-Reactor on the President’s Council on Jobs and Competitiveness.

Harlequin001's picture

GS shareholders can pay, they did after all, benefit from his lying...

buzzsaw99's picture

Good catch. However, the squid is the law.

Thomas's picture

No way, Dude. He will certainly get a fine.

NotApplicable's picture

A fine bottle of wine perhaps.

Harlequin001's picture

No way dude, shareholders get the fine. He gets the bonus at an advantageous tax rate...

Widowmaker's picture

...until the swamp is drained.

Mach1513's picture

Squid is also fish bait.

Lloyd on a hook.

SilverFiend's picture

If the federal government has the time to prosecute Roger Clemens and Barry Bonds for lying under oath.......

leathaface's picture

+1 that was the first thing i thought of.  but RC and BB affect people's lives more than this fucker (or so they think)

Harlequin001's picture

Do Roger Clemens and Barry Bonds buy US government debt?

Lloyd does...

Ruffcut's picture

"bailiff, wack his pee pee!"

buzzsaw99's picture

"Thou shalt not take the name of the LLOYD thy SQUID in vain; for the LLOYD will not hold him guiltless that taketh HIS name in vain..."

Exodus 20:7


bob_dabolina's picture

Ok, ok you got him

He'll get:

30 days of house arrest and a $50 fine.

30 days probation to be served concurrently with his house arrest.

Mach1513's picture

30 days off for God-like behavior

fine to be paid by FRB criminal activity facility

Harlequin001's picture

and no more chocolate for at least a week....

Naughty Lloyd, have another bonus...

and don't fuckin' do it again...

until we ask you...

Traianus Augustus's picture

I am pretty sure that there was/will be a covert directive sent out from the WH to prove without a shadow of a doubt that Mr. Cohn is innocent of all future charges.   After all didn't they already say we shouldn't count what happened in the past?!?!

DeadFred's picture

Rule #1- The banks control the government, not the other way around.  In some ways I hope he gets away with it because of last time.  Remember, they tried this last year?  Filed charges and the bottom dropped out of the market?  Or the bottom was dropped out of the market.  The paranoid side of me (getting bigger every day) imagines the GS lawyers telling the government lawyers on May 5th "You're making a mistake here.  Tell your masters to pay attention to what happens tomorrow afternoon, then we'll talk again".  When did GS get their rediculous little fine and when did the market shake off the head and shoulders formation and start rising again.  That paranoid part of me has always thought QEII was a bribe for GS and friends to forgo the fortune they would make on the standard tank-and-buy operation on the market in July and August.  Do you think the Dems would own the senate still if the Dow was at 8000 in November?  Not that it matters it's just crooks of another flavor.  Sorry for the rant, I just hate thieves.

Bill D. Cat's picture

The devil made him do it .

leathaface's picture

Can they back-date their statements to congress, like they do their stock options?

glenlloyd's picture

You mean like they did at Countrywide?

Mach1513's picture

Amend statements - done all the time - correct errors - nothing wrong here

doing Yahweh's work

buzzsaw99's picture

There is more of a chance TD will face jail time for asking that question than the Squid COO will for felony perjury.

Sweet Chicken's picture

Burn that mother fucker at the stake.


Edit: Bitchez

mrdenis's picture



Forgive them for they know not what they do


flowerguy's picture

all he has to do is prove he was willfully ignorant at the time of the statement.

That just means some new "system" did not report the sources off all borrowed funds to all the right people :)

topcallingtroll's picture

Our information systems failed us. We will set up a task force to study the issue and improve corporate communication so that the right people have the right knowledge available to them. We are humbled by this error, but will learn from this incident. We wish we never made mistakes but we are only human.

JPG101's picture

GS might even get taxpayers to pick up the tab for improving their communication system?

carbonmutant's picture

Some people believe that Bernanke is God, in which case lying to Congress is permissible...

Josh Randall's picture

This is our window of opportunity - just like Capone had his achilles heel with taxes, we have this DOUCHE if we want him. Lets see if the political will exists yet 

NotApplicable's picture

What the fuck is this "we?" Or the fallacy of political will? That shit is all political theater to mesmerize the rubes.

As George Carlin said, "They have a club and you ain't in it!"


VeryDumbMoney's picture

"We" lmao.  It's "them" and "us" - it's a good idea to keep it in mind.

topcallingtroll's picture

He is goldman sachs so congress will do nothing. They all need campaign contributions. I am reminded of the song "If I Had a Rocket Launcher."

The little people need to take matters into their own hands if we cant depend on authoritah.

Cmon. There has got to be someone relatively healthy with a terminal diagnosis out there somewhere. Al Queda? Are you all talk? Didnt we hear something about a fatwa against bankers? Now is the time to make amends for that tower thingy.

augie's picture

I'm sure he will get a stern talking to. Very "strong words" will be used, it will not be pretty.

Shameful's picture

Consequences in the form of a promotion and bonus?

We don't have laws in this country. We have a set of rules that are enforced on the proles to keep them in line. The master class is immune. They could eat babies in front of CONgress and the only comment would be "Are you going to finish that?". Then Kudlow would go on and talk about how baby eating will drive the economy as the increased need of new babies will create a booming market in doctors.

Careless Whisper's picture

We lost money on Abacus.


bingaling's picture

Wow, maybe they will impeach him. He will be the first coo to ever be impeached . Impeach definition: a horrible stain in history books resembling the color peach.

anony's picture

Do chickens have lips?

baby_BLYTHE's picture

Ron Paul on CSPAN. Takes Questions from Callers. 

Est. Running Time: 40 min

Part 1: http://www.youtube.com/watch?v=aaJ8V17rziE

Part 2: http://www.youtube.com/watch?v=tlzp8O1ew7g

Part 3: http://www.youtube.com/watch?v=N04AmrsXmrE

Part 4: http://www.youtube.com/watch?v=8ns2sIoskSA

Cliff(s): First 3 mins part 1, his basic economic thesis/forecast going forward 

benevolous's picture

I guess this means ZH hasn't found evidence of substantial use of the discount window by GS, though it has found evidence that GS used it more than once, including 2 times for $1 million each.