* Griffin says to remain client of Goldman Sachs
* Says Goldman a "solid partner" and top notch firm
By Megan Davies and Paritosh Bansal
BEVERLY HILLS, Calif. April 26 A civil fraud
case against Goldman Sachs Group Inc (GS.N) should not be used
to push through financial reform and doing so would be
"childish," said Kenneth Griffin, the chief executive of hedge
fund Citadel Investment Group.
A broad legislative push by President Barack Obama and his
fellow Democrats has come at the same time as fraud charges
filed against Goldman by the U.S. Securities and Exchange
The suit charges that Goldman hid vital information from
investors about a subprime mortgage-linked security.
Griffin, speaking on the sidelines of the Milken Institute
Global Conference, said the case against Goldman comes down
down to a "highly technical point" of whether there was
"I think that the disclosure around one transaction being
the justification to vilify Goldman Sachs or to pass regulatory
reform is just incredible," said Griffin. "I don't want to use
the word childish ... but it's childish."
"We should be beyond using one transaction gone awry to
justify how we regulate companies that employ collectively
600,000-700,000 people," he added.
He said there are "no winners when you take market leaders
out and cast them as being lacking in integrity and ethics."
The U.S. House of Representatives passed a package of
financial reform proposals late last year, and the Senate is
due to vote on Monday whether to start working on its own
sweeping set of proposals this week.
"I think the Goldman Sachs case has clearly energized the
Democrats with respect to passing the regulatory reform,"
Griffin, who said his firm would "absolutely" remain a
client of Goldman Sachs, described the investment bank as a
"top notch organization."
"Do they have a problem here?," said Griffin. "The SEC
thinks so and we'll let the courts decide. From my personal
experience, Goldman Sachs has been a very solid partner of
(Reporting by Megan Davies and Paritosh Bansal; Editing by