Clegg says suspend Goldman Sachs contract

Goldman Sachs should be suspended as an adviser to the government until fraud allegations are investigated, Nick Clegg has said. This is the first reaction to this troubled topic of toxic banking. It is a step in the right direction.

The Liberal Democrat leader referred to US allegations that the investment bank had defrauded investors. He said it was a reminder of the "recklessness and greed" that had "disfigured" the banking industry and said the allegations were "extraordinarily serious". They are and such activity in the financial markets is not only wrong on a criminal point but are a source for destabilising trust in the banking industry.

Nick Clegg said today, "We believe that Goldman Sachs should now be suspended in its role as one of the advisers to the government until these allegations are properly looked into." Vince Cable added, "The Goldman issue is not simply an issue for the US, it is emerging that the British taxpayer may have lost something in the order of £500m, perhaps more, as a result of the guarantee for the complex derivatives that were given by ABN Amro, which of course is now part of RBS, so there is a very strong British interest in this."

Slowly but surely getting to the bottom of the banking crisis? Hopefully so.

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