* Clients "largely past" Levin report, CFO tells analyst
* Goldman chosen for AIG stock and Chrysler debt offerings
* Goldman does not expect SEC claims
By Lauren Tara LaCapra
NEW YORK, May 26 Goldman Sachs believes its
clients are "largely past" the regulatory investigations and
accusations that have surrounded the bank, according to an
analyst who met its Chief Financial Officer.
Goldman Chief Financial Officer David Viniar said the bank
does not expect the U.S. Securities and Exchange Commission to
bring any more claims against it after a $550 million
settlement last year, according to a report from Susquehanna
Financial Group analyst David Hilder.
Viniar also said a report from a Senate subcommittee --
known as the Levin report -- unfairly accused the bank's
employees of failing to disclose information at hearings,
But Clients have moved on, Viniar told Hilder.
Customers paid the bank more than $9.2 billion in the first
quarter, excluding revenue from Goldman's investing and lending
"Many large and small firms competed with (Goldman Sachs)
for that revenue, and clients chose to pay it to (Goldman),"
The U.S. government chose Goldman as the lead seller of
nearly $9 billion worth of American International Group Inc
(AIG.N) stock, as well as Chrysler debt, Viniar said.
Goldman has been the subject of intense scrutiny for more
than a year. The bank settled civil fraud charges with the SEC
related to one of its collateralized debt obligation trades
last July for $550 million.
The subcommittee report, promoted by Senator Carl Levin, a
Democrat from Michigan, has revived criticism of Goldman
recently. Viniar noted the SEC had already reviewed the
documents in Levin's report as part of its earlier probe,
Hilder said in his report.
In addition to the Justice Department and SEC reviews of
the Levin report, Goldman also disclosed recently that the
Commodity Futures Trading Commission is looking into the
activities of a subsidiary. The Federal Reserve is also
investigating the foreclosure practices of its mortgage
servicing subsidiary, Litton Loan Servicing.
(Reporting by Lauren Tara LaCapra; editing by Andre Grenon)