We have all heard the jokes that Goldman Sachs is really “Government Sachs”. And history has shown many times just how much influence Wall Street Firms truly have over dictating policy and laws.
Matt Taibbi (Rolling Stone Reporter) has an article posted over at “The Beast” which shows just how deep the Wall Street / Washington, D.C ‘love fest’ really is.
[...]It gets worse. According to a Glenn Greenwald piece I just read, even Gary Gensler is a former Goldman employee. That absolutely blows my mind. Genlser is Obama’s choice to head the Commodities Futures Trading Commission, whose purview is the derivatives market. The CFTC was the battleground where ages ago Rubin, Summers, and then-Rubin aide Gensler teamed up to whack CFTC chief Brooksley Born, who had serious concerns about the burgeoning derivatives market, in particular the credit-default swap market. Rubin overturned Born’s recommendations, and derivatives were freed from most regulation. That economic Alamo led almost directly to the AIG disaster.[...]
(hat tip DaveW for the article)
Click on the image below to read the entire article over at ‘The Beast’
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{ 8 comments }
Not sure where the evilness comes from re: Goldman Sachs. A quick review of Goldman’s history will show, that for many decades, Goldman has a policy of giving back, public service. How that policy is construed to implicate well meaning Americans, into some kind of self serving despots is factually unsupportable.
See Below Goldman’s latest Public service initiative.(2004)
Goldman Sachs’ Public Service Program is even more ambitious, granting high-level employees up to a year’s sabbatical to participate in a non-profit project of their choice anywhere in the world. Like E&Y, consideration is given to how the employees’ skills can add value to the project.
“The Public Service Program, like many other initiatives at Goldman Sachs, encourages our people to expand their world view, to be broad thinkers and to move outside their comfort zones,†says Eileen White, Managing Director at Goldman Sachs. “Participants bring our culture of teamwork and excellence to the nonprofit sector and return with the invaluable experience of seeing things in a different way. It has a real impact on them as individuals and strengthens who we are as a firm.â€
The “evilness” arises from the huge amount of money, insider information, opaque FED/treasury/clearing houses, political appointments, slow legal system, global jurisdictions, captured regulators, complexity of the financial instruments, explicit and implicit extortion (to big to fail), cause and effect lag time, and a public too apathetic and too busy making a living.
Hey Scott: It sounds like YOU work for Government Sachs. They give a 1 year sabbatical to let employees better themselves, WOW. What does that have to do with the price of beans in china? GS and JPM have run this nation for many decades.
Hello Mike and ????
Supporting documentation would help sway me, as I look at all sides.
Some facts are very clear. Goldman Sachs is not even close to being the 3rd largest bank. Actually, Goldman is much more than 3 times smaller than Walmart. Looks to to me they would have been better off selling socks and batteries instead of trying to control this country.
The American populace has always been apathetic. Look at the problems Gearge Washington had in recruiting, for 1 instance.
Too busy making a living is our heritage. We originally designed a system of governmental institutions that were slow and weak, so those institutions would not interefere with our commerce. It was always about the freedom of commerce. The Venetian (in particular), Roman, and British systems were all incorporated to build our hybrid system that we enjoy.
Really fellas, I’m not trying to be a jerk.
I try to see the glass half full. I am not against seeing trends. Some of the trends that you do not like, I do not like them as well. Fun Trivia Question: The trend of BIG Government started when?
Have a good holiday! Remember those who gave the most.
Scott,
It’s becoming clear that you’re the type of person who, looking at an object through a coke bottle, says, ‘ah, but if you twist the bottle this way the object is upside down!’ Also known as, a devil’s advocate and Rebel Trader muse.
Your argument that GS has public service programs is a “Red Herring” fallacy of logic. It is easily addressed by informing you that a wolf in sheeps clothing is not a sheep, but a wolf.
Sorry Sir:
The sheep listen to speeches without verifying.
The Wolf makes speeches knowing that the sheep will never check on lack of facts.
I gave historical facts and figures that can easily be verified or put down. The political speeches are boring, and no better than what many complain about. While you may assume a person or companies motives are evil, I look for the evidence.
If anyone has any evidence, or indication of a conspiacy, I am all ears. Making statements that cannot be verified is grandstanding, with an intention to deceive. Just because someone says it’s so, does not make a truth. If you do not insist on the truth, you have left yourself open to a great deception. I, my friend, will never rely on what someone “says” is the truth.
Re: Goldman Sachs: They have a very long history of encouraging their best minds to give back. Some are drawing a conclusion of that service is for personal or business gain. I assume that anyone making those statement can “show me the money”.
If they cannot, they have been deceived, or worse, the deceiver.
As a manager of over 200 people, I hold myself very accountable for what I say. I also hold all of my people accountable for whar they say.
This is about accountability, and personal responsibility. Everything you are for, I assume.
Scott, the article has nothing to do with how much employees give to their communities or not.
This article is all about the revolving door that is Goldman Sachs and Washington, D.C.
You do know that former Treasury Secretary Hank Paulson was CEO of Goldman Sachs, right? And it was he who while CEO persuaded congress to relax the laws allowing Wall Street firms to take on more leverage and it is that very same leverage that has contributed to the financial mess we are in now. Why are you defending them?
Did you read the full article written by Matt Taibbi?
Hello Chuck,
Thanks for the response and the service you provide.
Of coarse Paulson, Rubin,and others from Goldman have served the American people in Government.
There is no doubt that errors were made at all levels, by many people,for many years.
I have a problem with Americans who, with certainty, ascribed devious motives for anyones errors, without having proof of those motives.
To ascribe their actions as a lack of common sense, is one thing.
To ascribe corruption or conspiracy demands some minimal proof.
You and I both know that recessions are completely normal. Yet, too many act surprised when the recession comes, and then want to demonise
well meaning Americans, who have families and reputations.
Trust me on this one please. As someone who does business overseas, I want to repeat a statement from one of our customers who was asked why he was selling his large company in Africa, and moving to the U.S..
“Scott, you don’t understand, Africa is inherently a dishonest, corrupt continent, America is inherently an honest country.”
Chuck, I see the inherent honesty of America’s business people daily.
American business communities, biggest assett is, integrity.
Any long term business strategy must have integrity as a hallmark.
So, to sum up.
1. I do not disagree with the article.
2. I do not disagree with your partial characterisation of Wall street firms influencing laws and regulations.
However, your brief characterisation does not give perspective.
For instance, I am a lobbyist against the sugar industry (corporate welfare). I really do not want to be a lobbyist, but I am forced to go to Washington and try my best to influence the congress. Why? Because the Congress keeps butting in our industry. I have to try very hard to influence some of the most stupid regulations that defy any logic.
I don’t like the some of the trends that I am seeing. I look to history to try to see where some of these rather extreme ideas and concepts come from.
Well, enough for tonight.
Let me know what your thoughts are,
Best to you,
Scott