Bank's ties to government could be golden

WASHINGTON, April 22 (UPI) -- Analysts said New York bank Goldman Sach's deep ties to government could pay off now that the bank has been accused of fraud.

The Securities and Exchange Commission filed charges against Goldman Friday, accusing the bank of selling investments secretly designed to fail, allowing those who bet short on the housing market to profit handsomely.

But the SEC has taken on a bank with a long history of ties to the government, including $18 million spent on lobbying in the past 10 years, The Hill newspaper reported Thursday.

Pivotal among personnel connections is Greg Craig, on President Barack Obama's legal team for his first year in office, who now works for Goldman Sach's law firm Skadden, Arps, Slate, Meagher & Flom.

In addition, Treasury Secretary Timothy Geithner's chief of staff is Mark Patterson, formerly a Goldman Sachs lobbyist, the newspaper said.

"When you hear phrases like 'Government Sachs,' that is not good for them. But on the other hand, those relationships in Washington can pay off," said Added Douglas Elliott, fellow at the Brookings Institution.

"Goldman is impressive with their access and impact at all levels. Whether in Congress, White House or Treasury, you can clearly see their fingerprints everywhere," a bank lobbyist said.