Tuesday, April 28, 2009

Meanwhile, back to SemGroup

SemGroup's former CEO, Tom Kivisto, through his counsel, has come out swinging at the report of former FBI Director Louis Freeh, who was appointed examiner in the SemGroup bankruptcy. Counsel correctly notes that the voluminous report fails to identify a single person from Goldman or Bank of America who was supposedly interviewed. Nor does the report refernce a single document from Goldman other than the GS TRUE platform offering prepared for SemGroup by Goldman (wherein Goldman obtained Sem's trading book). In fact, Bank of America, as administrative agent of SemGroup's bank group (which includes Goldman) was given the opportunity to scrub the report in advance.

This all begs the question of why the examiner totally ignored the already broken story of the possible manipulation of oil prices by Goldman when issuing his report. Kinda like the way it has been ignored by the national media. Maybe when you have so many of your people in the government you don't have to worry about such things. You bet both sides of the deal, and take your government money. Maybe you then spread that money around. Hell, I don't know.

Freeh has now hit back, claiming Kivisto should have allowed himself to be sworn under oath as a part of the investigation. You would think the former FBI Director would know about the 5th Amendment. Nah, maybe he just wanted to put Kivisto in a star chamber with no preparation. Anyway, I am damn sure Kivisto's counsel kept Freeh informed, just like Forbes did. The facts they provided just did not apply to the foregone conclusion.

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