CEO Sell Signal: Goldman Sachs Blankfein Lawyers Up With Defense Attorney Who Has Represented Clients for Corporate Fraud and... Child Molestation?.

We dont want to make TOO much of the reputational implications, but just before the markets closed this afternoon, Goldman announced that its CEO had hired counsel-to-the-fallen-stars Reid Weingarten.

So who has Weingarten represented that might suggest what issues Blankfein and/or Goldman may be facing? Uh, well he's been there for Bernie Ebbers of WorldCom (corporate fraud) and Roman Polanski (child molestation).

Now, some of you haters may think there is a connection between the two crimes. In fact, some of you ingrates, who didnt appreciate Blankfein claiming during the financial crisis that Goldman was doing God's work, might believe the two are indistinguishable. Tsk, tsk. But it does make us wonder what the prosecutor thinks. JL

Courtney Comstock reports in Business Insider:

Is the Goldman Sachs CEO facing a new lawsuit?

The market seems to think so. Goldman Sachs just tanked in minutes before the close after news that Lloyd Blankfein hired a lawyer famous for defending vilified execs. It's back up a bit since dropping over 5%, but the news is still concerning

It's unclear whether the lawyer is for him, Goldman Sachs, or both, but Goldman Sachs's CEO Lloyd Blankfein hired Reid Weingarten, a high profile defense attorney who says "I'm used to these monstrously difficult cases where everybody hates my clients," according to Reuters.

Reuters says the hire might have something to do with accusations of Blankfein's committing perjury. Or something else:

One former federal prosecutor, who was not authorized to speak publicly, said Blankfein may have hired outside counsel after receiving a request from investigators for documents or other information.

A snapshot of Weingarten's resume:

Defending Bernard Ebbers, the former chief of WorldCom who was accused of conspiracy
Defending Roman Polanski
Defending former Enron chief accountant Richard Causey
Defending the ousted Tyco International counsel Mark Belnick
Defending the former Rite Aid Corp. exec Franklin C. Brown

What else could this mean? It could be no big deal at all. Blankfein might simply want outside counsel for advice. Goldman might be paying for the lawyer. It's no secret that Goldman and Blankfein are facing a number of lawsuits. Or it could say something about Blankfein's future at Goldman.