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| Economy |
| The White House and Goldman Sachs prepare for "all out war" |
| 2010-04-19 |
| The White House and Goldman Sachs, long seen as virtual brothers in arms on financial policy, are now gearing up for what one senior Goldman executive, speaking to political blogger Taegan Goddard, called "all out war." The conflict revolves around the SEC's fraud prosecution of the investment bank, announced last Friday. But that was just an opening salvo. That battle has been rapidly folded into the larger war on Capitol Hill over legislation to reform the financial industry. This Thursday, the president is scheduled to deliver a major address on Wall Street reform at New York's Cooper Union. And the political arm of the Obama White House is clearly looking to leverage the new round of anti-Goldman sentiment triggered by news of the fraud investigation to its own political advantage. Top Contributors to Barack Obama | OpenSecrets Goldman Sachs - $994,795 |
| Posted by:ed |
| #3 In other words, the SEC is a dreadful failure in fulfilling its core mission of protecting individual investors, as the Stanford and Madoff cases show. But the SEC is very good at nailing politically correct targets like Goldman years after the fact on charges that have little or nothing to do with the investing public. On the Goldman case, by the way, the news broke yesterday that the SEC commissioners split 3-2 on whether to bring the lawsuit—a rare partisan split on such a prominent case and further evidence of its thin legal basis. In the cases of Stanford and Madoff, thousands of small investors lost their life savings. In the case of Goldman, some masters of the financial universe lost money on what they knew was a calculated gamble. Which did more societal harm? Link WSJ Political theater with the government engaging in extortion. |
| Posted by: phil_b 2010-04-19 21:27 |
| #2 It's a bit like that simpsons halloween episode... the one with Kang and Kodos for President... no matter who wins, humans lose! |
| Posted by: Thing From Snowy Mountain 2010-04-19 21:20 |
| #1 The govt will make a big deal about this. However, nobody will go to jail. There will be a fine, but small potatoes compared to the damage done and the profits made. No investigation will be launched against Congress for setting up the means to do this sh*t. Smoke and mirrors for the chumps, who are us, the citizens and taxpayers. |
| Posted by: Alaska Paul 2010-04-19 20:57 |