Our Blog Take on Goldman Sachs Testimony

Goldman Sachs executives (above) face questioning on Capitol Hill on a deal related to subprime mortgage securities.
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NEW YORK (TheStreet) -- It was a contentious day on Capitol Hill for Goldman Sachs (GS) - Get Report executives. Below was our blog of the event through the market close:

Fabrice Tourre, née "Fabulous Fab," was among the first round of witnesses, and he was repeatedly pressed about how he represented hedge fund trader John Paulson, who was the short on the deal, in question to the other investors involved. Tourre is the only person named as part the

Securities and Exchange Commission's

civil fraud charges against Goldman, which is accused of improper disclosure in relation to a synthetic CDO consisting of subprime mortgage securities.

Appearances by Michael Swenson, a managing director in structured products trading, as well as Joshua Birnbaum, who had the same title before resigning, and Daniel Sparks, who headed Goldman's mortgages division before leaving the firm two years ago, have already taken place. CFO David Viniar and Chief Risk Officer Craig Broderick were on the hot seat just after the market's closing bell rang, and CEO Lloyd Blankfein is still to come.

>>>Lloyd Blankfein Testimony

Much of the action so far has consisted of various Senators attempting to pin down Goldman executives about how much the company benefited from short positions on the housing market. Goldman

contends

it lost $1.7 billion on residential mortgage-related products in fiscal 2008, while

Carl Levin

(D., Mich.) says the company made more than $3 billion by going short. The party line from Goldman executives has been that they were simply acting as market markers and

managing risk

.

While there have been a number of awkward moments (see Levin's exchanges about the so-called 'sh***y' deals with Sparks), investors seemed to think the Goldman contingent was holding its own as the stock was among the few financials to advance in Tuesday's weak session.

The shares rose a little less than 1%, even as the

Dow Jones Industrial Average

fell more than 200 points

to finish back under 11,000 for the first time since April 9. The

KBW Bank index

lost more than 3%. Goldman's stock is still down roughly 17% since the SEC's charges were announced.

-- Written by Lauren Tara LaCapra in New York

.