The shocking news that Goldman Sachs is greedy
Twenty five years ago I quit a job on Wall Street to write a book about Wall Street. Since then, every year or so, UPS has delivered to me a book more or less like my own, written by some Wall Street insider and promising to blow the lid off the place, and reveal its inner workings, and so on. By now, you might think, this game should be over.
The excerpts that Bloomberg published Wednesday from its interview with Barack Obama provoked some indignation from Simon Johnson, Paul Krugman, and others, but the full interview, published yesterday morning by Bloomberg BusinessWeek, deserves a few additional howls.
On the first day of the Financial Crisis Inquiry Commission, Phil Angelides demonstrated a gift for powerful and memorable metaphor: accusing Goldman Sachs of essentially selling defective cars and then taking out insurance on the buyers. Lloyd Blankfein and the other CEOs looked mildly uncomfortable, and this image reinforces the case for a tax on big banks--details to be provided by the president later today. But the question is: How to keep up the pressure and move the debate forward? If we stop with a few verbal slaps on the wrist and a relatively minor new levy, then we have achieved basi
Sources say that Goldman Sachs’s bonuses will be announced on Monday, January 18, and actually paid sometime between February 4 and February 7. In previous years, the bonuses were paid in early January--but the financial year shifted when Goldman became a bank holding company. For critics of the company and its fellow travelers, the timing could not be better. Anxiety levels about the financial sector are on the increase, even on Capitol Hill. The tension between high profits in banking and stress in the rest of the economy becomes increasingly a topic of discussion across the nation. And you
The fundamental divide in opinion regarding our financial system is: Are the people running "large integrated financial groups" hapless fools, buffeted by forces beyond their comprehension and control; or do they know exactly how to ensure they get the upside and the awful, sickening downside is borne by society--including through high unemployment? Some light was shed on this issue by Monday’s meeting at the White House or, more specifically, by who didn’t turn up and why.
Jenny Anderson has an interesting and well-reported piece in today's Times about the concern among some Goldman alumni that the current CEO, Lloyd Blankfein, has changed the culture of the company. As Anderson sums it up, "[S]ome current and former Goldman executives say Mr.