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THE PROGRESSIVE REVIEW - April 22, 2010

Goldman Hires Obama's Ex-White House Counsel to Defend
Bank Against Fraud Charges
by: Jason Leopold
truthout|Report

Wall Street banking behemoth Goldman Sachs, which was
charged with securities fraud last Friday over its role
in the subprime mortgage meltdown, has hired President
Obama's former White House Counsel Greg Craig to defend
the company, according to a report published late Monday
by Politico.

Reporters Eamon Javers and Mike Allen, citing an unnamed
source, reported that Craig was hired "in recent weeks to
help navigate the halls of power in Washington."

"Whatever the reason for his hiring, Craig will presumably
be a key player in the intricate counterattack Goldman
Sachs officials in Washington and Manhattan improvised
during the weekend ? a plan that took clearer shape Monday
as Britain and Germany announced that they might conduct
their own investigations of the firm," Politico reported.

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As Truthout reported, Craig was ousted last November after
he fell out of favor with some Obama administration
officials, including White House Chief of Staff Rahm
Emanuel, because Craig backed public disclosure on
documents and photographs related to the Bush administr-
ation's use of torture against alleged terrorist detainees
and his role in pushing the White House to shutter
Guantanamo within a year.

Craig's efforts, originally championed by the administr-
ation, led to blistering attacks against the Obama White
House by former Vice President Dick Cheney and Republican
lawmakers who accused the president of giving aid and
comfort to the "enemy."

Craig is no stranger to high-profile cases. He represented
fomer President Bill Clinton during his Senate impeachment
trial. was also instrumental in working closely with Karl
Rove?s attorney, Robert Luskin, and House Judiciary
Committee Chairman John Conyers and his staff that resulted
in Bush's former political adviser testifying before the
panel behind closed doors about the firings of nine federal
prosecutors in 2006 and the apparent political prosecution
of former Alabama Gov. Don Siegelman. Craig also arranged
a similar deal for former White House Counsel Harriet
Miers.

As Goldman's attorney, Craig will have defend the bank
against charges that it failed to inform its investors
that one of its clients had a hand in creating a mortgage-
based investment portfoloio and then bet the housing market
would collapse, which led Goldman to lose $1 billion. The
trader earned $3.7 billion, according to a civil suit
filed last week against the company by the Securities and
Exchange Commission following a nine-month investigation.

Despite the allegations the SEC levled against the firm in
a civil complaint last week, Goldman still intends to dole
out about $5 billion in bonuses, the Times of London
reported.

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Separately, Newsweek reported earlier Monday that Sen. Carl
Levin, the chairman of the Senate's Permanent Subcommittee
on Investigations, has obtained new documents that link
"certain actions to specific people" at Goldman Sachs
related to deals the company made that precipitated the
housing market crash.

Levin's office wouldn't disclose the substance of the
documents he has obtained nor would his staffers identify
the individuals at Goldman the Michigan Democrat intends
to name as having played a direct role in the collapse of
the bank and the financial collapse that ensued.

But come next week, according to an unnamed legislative
official quoted by Newsweek, Levin believes the information
he has collected will result in "another big shoe to drop
on Goldman."

Levin's subcommittee is scheduled to hold hearings next
week where Goldman's Chief Executive Lloyd Blankfein will
testify about what he knew and when he knew it. It's
unknown if Craig, who returned to private practice after
his departure as White House counsel last year, will
accompany Blankfein to the hearing.

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