The Louis Freeh report is now"out" at least to the public in the SemGroup bankruptcy. Of course Goldman and the banks got to scrub it prepublication for "privilege". At first blush Freeh appears to blame SemGroup bosses, Kivisto, Wallace, and others. A closer inspection reveals that SemGroup traders believed they had a trading strategy that worked so long as oil stayed within its historical range (can you say supply and demand) The problems arose in may and June 2008 when"incredible volitility and one way movement of oil market overwhelmed the investment strategy" (can you say speculation)
More importantly, the Report confirms that Forbes was right. Buried right in the middle, at page 131, it states that "Stallings confirmed that Goldman made more data requests to SemGroup during its due diligence inquiry regarding the types of trades that SemGroup had entered into, including a breakdown by commodity type and types of positions". While the report cites various Goldman and J. Aron sources, the sources are not named. Amazingly, the report accepts Goldman's version that it terminated SemGroups' private GT True offering in eraly July by phone call only.
Enough has been provided between the lines for the SemGroup unsecured creditor's committee to demand its own investigation of Goldman's role in this fiasco. Go for it guys!
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