If the members of the COMPAS panel of CEOs and business leaders sat in judgment of Goldman Sachs, the company would probably be in deep trouble. An overwhelming majority would find the firm guilty of fraud under two scenarios:

• Goldman Sachs would be found guilty of civil fraud if the client that hired Goldman Sachs to create a mortgage-backed instrument to bet against was secretly managing the instrument to ensure its failure, and
• Even if client that hired Goldman Sachs was not secretly managing the product, Goldman Sachs would be found guilty if it is confirmed that Goldman did not tell purchasers of the product that the product had been created for a firm that was now betting against it.

Only a third of the panel believes that the SEC suit against Goldman was politically motivated.

On balance, panelists are of two minds about whether the suit will affect confidence in the American economy.

These are the key findings from this past week’s Internet survey of CEOs and business leaders on the COMPAS panel. The weekly business survey is undertaken for Canadian Business magazine under sponsorship of BDO Dunwoody LLP.

View / Download complete poll in PDF