The recent fraud allegations against Goldy for their scheme with John Paulson are enough to turn one’s stomach. It’s not really any different than a coach betting on the opposing team and then playing only his second- and third-string players.
The big question is whether the Senate will maintain the attitude it showed during its grilling of Goldman CEO Lloyd Blankfein, or will the passage of time, and the replacement in the minds of the public by other stories, cause a reversion to business as usual. As the New York Times put it in one of its blogs, “This is the firm, keep in mind, that government officials typically come to for advice. Some have called it Government Sachs, in part because of the many Goldman alums who have gone into government service. Here’s a look at some of Goldman’s alumni.”
Financial industry reform ideas can’t even get debated on the Senate floor, yet abuses of the system like this continue.
The thousands of smaller but legitimate lenders and financial services companies out there will feel the fallout of a further decrease in public trust of their industry, especially in the wake of the bailouts and the issues that went with it (B of A bonuses, anyone?) It’s time for some real reform from Washington — and time for consumers and small businesses to be as protected as the big boys. After all, who needs that protection more?
Image: World Economic Forum: Photo by Annette Boutellier
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