Could Blankfein end up doing time? (Can such things be?)

Could Blankfein Face Prison?
Aug 23, 2011 12:34 AM EDT

The Goldman Sachs CEO didn’t get a big-time criminal-defense lawyer because he’s worried about an SEC wrist slap—there’s a real possibility of doing time, says former Goldman managing director Nomi Prins.

There’s a saying that loose lips sink ships. So can dead weight.

Goldman Sachs CEO Lloyd Blankfein, who just got himself a lawyer, may be facing the possibility of sinking, either because of his own words in April 2010 before the Senate Permanent Subcommittee on Investigations (PSI) or because his shipmates are distancing themselves in a legal version of every man for himself. Or both.

Recall that Blankfein emphatically told the subcommittee, “We didn’t have a massive short against the housing market, and we certainly did not bet against our clients.” The 650-page subcommittee report (PDF) presented on April 13, 2011, which cites Blankfein 79 times, begs to differ.

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