[Congressional Record (Bound Edition), Volume 156 (2010), Part 5]
[House]
[Page 6071]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   EXPAND GOLDMAN SACHS INVESTIGATION

  (Mr. DeFAZIO asked and was given permission to address the House for 
1 minute.)
  Mr. DeFAZIO. Well, all America has heard about ``too big to fail,'' 
and they are still pretty angry about that and the bailout of Wall 
Street. But now there is a new addition to the lexicon thanks to 
Goldman Sachs, and that is ``designed to fail for profit.''
  Goldman Sachs worked with a hedge fund manager who put together 
collateralized debt obligations that he hand-picked because he thought 
they would fail. Goldman got a fee for putting them together, Goldman 
sold him insurance, or bets against them, and then Goldman went out and 
sold to unknowing investors those same securities as great investments.
  We are thankful that the Securities and Exchange Commission is back 
on the beat after a long nap under the Bush administration and Chris 
Cox. We congratulate Chairwoman Schapiro, but we are asking her to 
expand the scope of her investigation to look at any credit default 
swaps that were paid to Goldman Sachs that involved these so-called 
Abacus instruments and whether or not we could reclaim those as ill-
gotten gains for America's taxpayers.

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