Blankfein Lawyers Up, Goldman Stock Falls

CEO hires hotshot DC attorney Reid Weingarten
By Polly Davis Doig,  Newser Staff
Posted Aug 22, 2011 5:35 PM CDT
Blankfein Lawyers Up, Goldman Stock Falls
Lloyd Blankfein, chairman and ceo, Goldman Sachs speaks to the 2011 CARE Conference and International Women's Day Celebration in Washington, DC, March 9, 2011.   (Getty Images)

Lloyd Blankfein has gone and hired himself a lawyer, reports Reuters. The Goldman Sachs CEO, whose firm is facing ongoing investigations into its role in the financial crisis, has retained high-powered DC defense attorney Reid Weingarten, whose past clients have included an Enron exec and a former secretary of agriculture. The news immediately sent Goldman stock downward, notes the New York Times, and shares closed down 4.7% on the day. "Why do you bring in someone like that?" asked one source. "It says one thing: that they're taking it seriously."

Speculation is rampant that Blankfein had received an individual subpoena, but Goldman downplayed the move in a statement: "As is common in such situations, Mr. Blankfein and other individuals who were expected to be interviewed in connection with the Justice Department's inquiry into certain matters raised in the PSI report hired counsel at the outset." (More Lloyd Blankfein stories.)

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