(The following is a reformatted version of a document issued by Goldman Sachs and received via electronic mail. The document was confirmed by the sender.) Testimony by David A. Viniar to the Senate Permanent Subcommittee on Investigations Chairman Levin, Ranking Member Coburn and Members of the Committee: My name is David Viniar. I have been Chief Financial Officer of Goldman Sachs since 1999 and Head of the Operations, Technology, Finance and Services Division since 2002. I am responsible for risk management, financial control and reporting, and financing our business, among other duties. I appreciate the opportunity to appear before you and contribute to the Subcommittee’s work on understanding some of the causes of the financial crisis. I’d like to focus my comments on our risk philosophy and our approach to risk management, which Craig Broderick, the firm’s Chief Risk Officer, will also be addressing in some detail.
Goldman Sachs Group Inc., Wall Street’s most profitable firm, will face off against a U.S. Senate subcommittee today in a pivotal hearing that could have repercussions for the future of the financial industry.
In a speech aimed equally at Wall Street and Main Street, President Barack Obama urged the financial industry to drop the “furious effort” to fight his regulation plan, saying a failure to impose tougher rules on the market will put the U.S. economic system at risk.
The satraps of Capitol Hill don’t have much taste for aggressive financial reform. They do have a certain talent, however, for the theater of aggressive reform. And when Goldman Sachs CEO Lloyd Blankfein settles in at the witness table of the Senate Permanent Subcommittee on Investigations on Tuesday, that’s what they’ll try to deliver: a moment that crystallizes three years of global disgust with the smart money boys who seem to have played the rest of us for fools.