Even worse, are they and other US banks the cause of Greece’s financial dire straits?
Testifying yesterday before the Senate Banking Committee, SEC Chairman Ben Bernanke said the Goldman Sachs and other US banks are being investigated for potentially setting up the current crisis in Greece. To top it off, Goldman is suspected of shorting the finances of Greece, betting that the economy will fail.
Bernanke told the Senate Committee that Goldman, over a ten year period, set up sophisticated credit arrangements that disguised the true nature and amount of Greece’s debt.
“We are looking into a number of questions related to Goldman Sachs and other companies and their derivatives arrangements with Greece,” Bernanke said, testifying before the Senate banking committee.”
“Addressing concerns that financial firms have been engaging in trades to bet on a Greek default, Bernanke said that “using these instruments in a way that intentionally destabilizes a company or a country is counterproductive, and I’m sure the SEC will be looking into that.” Washington Post