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Lloyd Blankfein
Former CEO and Chairman of Goldman Sachs
Led Goldman Sachs during the 2008 financial crisis while the bank profited from betting against the same mortgage securities it sold to clients
Overview
Lloyd Craig Blankfein served as CEO and Chairman of Goldman Sachs from 2006 to 2018. Under his leadership, Goldman Sachs created and sold collateralized debt obligations (CDOs) backed by subprime mortgages to clients while simultaneously taking massive short positions against those same securities. The bipartisan Senate Permanent Subcommittee on Investigations concluded Goldman had a "clear conflict of interest" and referred the case to the DOJ. Goldman paid $550 million to settle SEC fraud charges (the largest SEC penalty in history at the time) related to the Abacus deal, structured by Fabrice Tourre, where Goldman let hedge fund manager John Paulson select mortgage bonds for a CDO specifically to bet against them without telling investors. Despite this, Goldman received $12.9 billion in AIG bailout funds at 100 cents on the dollar. Blankfein testified before Congress claiming Goldman was just a "market maker." He famously said Goldman was "doing God's work." Blankfein received $70 million in compensation in 2007 alone.
Key Affiliations
Controversies & Concerns
Led Goldman Sachs while it bet against the same mortgage products it sold clients
Senate investigation found "clear conflict of interest" in CDO dealings
Goldman paid $550M SEC penalty for Abacus CDO fraud
Goldman received $12.9 billion in AIG bailout funds at 100 cents on the dollar
Received $70M in compensation in 2007 while economy collapsed
Claimed Goldman was "doing God's work" during financial crisis
Named in 1MDB Malaysian corruption scandal - Goldman paid $2.9B settlement
Related Investigations (2)
Criminal Charges & Violations
2 documented violations
15 U.S.C. 77q(a)SEC civil fraud charges - misleading investors in Abacus CDO ($550M settlement, no admission)(federal)
18 U.S.C. 19561MDB money laundering - Goldman subsidiary pleaded guilty ($2.9B settlement)(federal)
Known Associates & Connections
Fabrice Tourre
Goldman trader who structured Abacus CDO
John Paulson
Hedge fund manager who selected bonds to bet against
Sources & Documentation
1 documented sources from official records, investigations, and reports
Personal Information
- Born
- September 20, 1954
- Birthplace
- The Bronx, New York
Education
- •Harvard College (A.B.)
- •Harvard Law School (J.D.)
Key Timeline
2006-06
Becomes CEO and Chairman of Goldman Sachs
2007
Goldman profits billions from mortgage short positions
2008-09
Financial crisis; Goldman receives $12.9B from AIG bailout
2010-04
Testifies before Senate; claims market maker defense
2010-07
Goldman pays $550M SEC settlement for Abacus fraud
2020-10
Goldman pleads guilty in 1MDB corruption case; pays $2.9B