GS is in the news, again, and their stock tumbled, in reaction to a law suit brought on by th SEC alleging that Goldman engaged in fraud as it relates to a CDO transaction from 2007.Their official reaction is that this suit is unfounded. The full suit can be found here. I have received many phone calls and emails asking what do I think? I have not worked at GS for 8 years, nor do I engage in any sort of discussions with them on this topic but many of the conversations with others have brought up the timing of this suit. The administration is obviously pushing for financial reform, and are having trouble getting it passed. The more outraged the public continues to get against Wall Street, the more pressure on politicians to pass a tough bill. The 'street' has obviouslybeen lobbying hard against it. Now could GS be in the wrong? I would have no idea one way or the other. What is clear is that the level of scrutiny has gone way, way up, and so has the risk associated with owning the stock of financial services companies.
Ironically I attended a panel yesterday yesterday on corporate ethics in the banking industy hosted by Auburn Seminary - the panel included Ken Feinburg ( the pay czar ), John Thain ( former GS President and now CIT CEO ), Beth Brooke ( Global Vice-Chair of Public Policy at Earnst and Young), and more....I cannot report on the discussion but I can write more on the topic, which I plan to do....
2 comments:
Jacki- Try this.
http://www.thebigmoney.com/articles/judgments/2010/04/16/its-not-just-goldman-its-clients?page=full
Of course the timing is also political, but the underlying evil does not change. This is why I reached out in November when I found your blog.
FDR went after Wall Street now Obama goes after Wall Street (it is the only political card he has left). The difference is today's Wall Street has distinct evil in play. FDR's time was playing on Envy. Today includes envy but is more rooted in Greed.
I have been waiting for this day (which I believe could be the beginning of a very destructive process for our country) for about 9 months. I will share some more thoughts later.
Chris Gray
Naples, FL
p.s. my daughter has continued to follow your blog involving your initiatives and finds it interesting.
Mauldin-GS "tip of the iceberg"
http://www.frontlinethoughts.com/pdf/mwo041610.pdf
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