(New York/Frankfurt) — Embattled investment firm Goldman Sachs is stepping up its counteroffensive to fraud charges leveled by the Securities & Exchange Commission.
The company denies the charges and has been sending e-mails and calling clients rejecting the accusations by the SEC.
Current and former Goldman officials will testify about the role of investment banks in the subprime mortgage disaster at a Senate hearing next week.
As part of its PR campaign, Goldman Sachs CEO Lloyd Blankfein attended President Obama’s address on financial reforms in New York City.
Goldman’s President and CEO Gary Cohn was also at the event with Blankfein.
The charges against Goldman stem from marketing of a financial derivative linked to subprime mortgages.
(Copyright 2010 by VERTEXNews/Newsroom Solutions)
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The BIGGEST thing one should not do is just deny charges when one is getting attacked – it’s the BIGGEST mistake in Crisis Management PR. But people and companies do it all the time. Many PRs don’t understand Crisis Management PR and so they try to handle Crisis Management campaigns like they would regular PR. It actually is a horse of a completely different color.
However, that being said… if this news article is correct, then it shows that Goldman is having some business trouble based on their horrible PR created by their own unethical and immoral doings. So, I am frankly pleased that they are going about it all wrong.