YOU’RE IN GOOD HANDS WITH GOLDMAN SACHS April 29, 2010
A golden boy at Goldman Sachs.
P.S. In case you forgot, just a year after the 2008 financial collapse and subsequent TAXPAYER bailouts, the nice boys at Goldman used low interest rates supplied by the Fed - and guarantees supplied by the federal government - to crank out around $12 Billion in profits and a whopping $20 Billion in bonuses for its executives.
Hey, do these guys know how to live large while the rest of the world is lining up at soup kitchens in the Great Recession?
Oh yeah. Goldman is also the focus of a civil fraud case brought by the Securities and Exchange Commission.
As one news account put the whole sordid affair of Wall Street in bringing down the U.S. economy and plunging the world into recession, “The problem for Wall Street is pretty simple: Most of its profits come from risk-taking trading activities, not giving clients advice such as how best to float a stock deal, or whether or not the client should merge with another company. In other words, Wall Street lives off gambling, as was made perfectly clear during the hearings as the committee discussed some of the crass emails from Goldman executives describing just how the gambling takes place.”
Another account put things this way:
“What Goldman Sachs does is what every investment bank does, which is to marry penny stock jobber sensibilities with market statesman imagery. They and their brethren continue to swear by the concept of the “Chinese Wall” between underwriters and brokers, a theory that is very, very hard to uphold when lots of money is on the line. And every investment bank in the business trades on the idea that they can take an asset, or group of assets, and increase their value faster than they would have normally appreciated as a part of their mystique.
But when you start concocting air filled, investment grade confections for sale out of rotting subprime mortgage loans, mortgage loans that were destined for default from their origination, you have either begun to believe your own bullshit or you have lost your mind.”
HAVEN'T HAD ENOUGH?
And in case you haven’t had your fill yet, here’s an interesting ABC news interview with the a Wall Street insider (William Cohen) who wrote a best selling book (“House of Cards”) about how Wall Street does business: