Goldman Sachs CEO to testify before Senate

BEIJING, April 22 (Xinhuanet) -- Goldman CEO Lloyd Blankfein will testify before a Senate panel next Tuesday, according to a person of anonymity familiar with the plan, AP reported.

Blankfein will answer questions before the Senate's Permanent Subcommittee on Investigation, according to the person.

The hearing was to discuss Goldman's role in the mortgage crisis, but much of the questions are now expected to focus on the civil fraud lawsuit.

Blankfein agreed to appear before the panel before the SEC sued the bank but is expected to take questions on the case.

It would be Blankfein's first public comments on the Securities and Exchange Commission's lawsuit charging that the bank defrauded two investors.

Fabrice Tourre, a 31-year-old Goldman Sachs banker at the center of the SEC's case against the firm, will testify in Congress next week along with his boss, according to sources.

The U.S. Securities and Exchange Commission last Friday charged Wall Street investment giant Goldman Sachs with "defrauding investors" over subprime mortgage securities, which were largely blamed for the worst financial crisis since the Great Depression.

Although the lawsuit needs further investigation, the case against the renowned global investment company has again sounded an alarm bell for financial regulation.