Lloyd Blankfein: Fraud Case Will 'Hurt America'

Lloyd Blankfein called up a host of top Goldman Sachs clients yesterday and told them in no uncertain terms where the SEC could stick its fraud charges. Blankfein complained that the case was politically motivated, and would “hurt America,” one of the clients tells the Financial Times. “He was very aggressive. He feels that the government is out to kill them.”

Blankfein didn't say if he intended to settle the suit, but clients got the impression that he would not. “They will likely fight aggressively and hope to win clean,” one client said. SEC chairman Mary Schapiro, meanwhile, issued a statement denying any political motivation. “We will be governed always and only by the facts and the law,” she promised. (More Lloyd Blankfein stories.)