April 23, 2010
Singapore. A top Asian fund manager said on Wednesday the civil fraud allegations against massive Wall Street bank Goldman Sachs was a smokescreen to divert attention from the financial crisis in the United States.
Goldman is being investigated for fraud by the Securities and Exchange Commission and Britain’s market watchdog.
It has also been learned that banks here in Asia are using the US bank’s woes to get an edge on multimillion-dollar fee-paying deals in the region.
Marc Faber, who runs Hong Kong-based fund manager Marc Faber, described the lawsuit against Goldman Sachs as a hunt for scapegoats amid economic problems faced by the US.
“The target now is Goldman Sachs. You distract the masses with a villain,” he said at the Asian Public Real Estate Association Forum in Singapore. Goldman’s leading role on Wall Street, coupled with massive paychecks to staff and bumper profits, make it an obvious target, Faber said.