Senate Witch Hunt
I’m watching the Goldman Sachs meeting by a subcommittee of the senate, and it looks like the Witch Hunt is abound. Who’s next Chase, BAC, Citi, …?
Some of the senators just look plain ignorant (especially Senator Levin)… I don’t see why they were speaking if they don’t know what they are asking about. I don’t think they have any idea what a market maker is, based on some of their questions and responses.
Mr. Viniar make the senate look pretty bad! The more he talks the more the senate looks like they are trying to pin something on Goldman that doesn’t exist. One senator kept going on and on about ethics, almost like he was hoping one of the Goldmans executives would break down and cry, it was almost funny. Senator Levin went on about Goldman taking 2 billion dollars from the tax payer, but really the gov. gave the money to AIG, and AIG paid back a loan that they owed Goldman… Levin kept going on that Goldman took taxpayer money, over and over, and Goldman CEO Blankein kept explaining that AIG payed the load, and if AIG didn’t, Goldman was insured by an insurer and wouldn’t have needed the money anyway. It was a very dumb argument that Senator Levin kept saying over and over… I now have no respect for Levin and think he isn’t the brightest of senators.
While I think Goldman didn’t really do anything wrong, I think some of the industry practices in their market need to be changed. But that’s not their fault, that’s the lawmakers fault sort of. Let’s be honest, the lawmakers didn’t understand the complex financial instruments that are out there! But I’m pretty sure Goldman did not try to cause the “Great Recession“.
What really kills me is that the government is pouring over emails, reading emails send by Goldman employees that were being enthusiastic about their job, or offering their feelings about certain investments.
What also kills me is the audience members dress in old style jail uniforms, what a joke. I’m absolutely positive they don’t have a clue about the financial markets, but they sure do act like they do! What losers…
Well, after hearing Blankein, I’m firmly in the Goldman camp! I especially agree with him in his statement that some of the limitations that the government are proposing will damage the US financial system, and make them so the foreign bank will have an competitive edge!
In general, the more I see the senate and government in action, the more I realize than any of us could do just as good of a job, if not better!
-MR
I watched a lot of the GS stuff on Tuesday and I cringe whenever I see Levin. I am from Michigan, so I get to see him enough as it is. He drives me insane.
I was out sick yesterday, so I ended up watching it too!
Levin sounded like a broken record. And sometimes his logic was really really off! I think we need more intelligent senators!
That okay, I have George Voinovich as a senator, and I now cringe when I hear his name…
Honestly, I think we can do a better job!!!
With all due respect, Goldman Sachs are more powerful than you let on in your article. The Bush government for example (both father and son) were always in GS’s back pocket with GS calling the shots. GS has been a very powerful entity for decades and do I believe that they conspired against their own clients for their own multi billion dollar gain? Heck yes I do. Betting that billions of dollars in mortgage securities based on over accommodated and fudged home loan applications would fail is a NO BRAINER. GS knew exactly what they were doing and they made billions of dollars doing it while the very ‘exotic’ products they created crashed and burned.
@RMoM
Hmmm, I disagree, Goldman lost money on that market over the years 2007 and 2008 combined. Citi, Bank of America did very poorly and both CEO’s were booted. Lehman and Washington Mutual went under. I don’t think they banks intended to destroy themselves.
Nor do I think they can predict the market place. That is why they all needed bailouts.
If I were a CEO and I needed a Bailout from the government, I’d be embarrassed as I’m sure the CEO’s that got booted were.
I work in the finance area (albeit in technology), and I’ve always hear that Goldman was the golden standard to measure yourself against.
Wow. I’m gonna leave this alone. 🙂
RMoM
Lol, I hope I didn’t come across harsh, I watched the senate committee and the things they said was just lacking in understand on their part.
I like a good debate, if you can come back with a reason I’m incorrect, I’d love to hear it… I’m flexible 🙂
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I completely agree that I have no respect whatsoever for Senator Levin. I always see him sneering over the top of his glasses at every hearing. But, what has this guy or the rest of the senate ever done? He is going to talk tough, then comission a panel to bury it. He is probably accepting campaign contributions from GS, even as the hearings are proceeding. Michigan needs to get rid of this guy. He is a national embarassment.
I completely disagree with your assesment of Goldman Sachs and their conduct. Although the evidence in the Paulson deal is tenuous, there are way too many transgretions and manipulations to ignore. GS and the other bailout banks have an attitude that they are too big to prosecute. I am very glad that it has started. And, I really hope it brings about some meaningful reform. Fingers crossed.
@Hope to Prosper
I’ve never seen Levin before, but I’m very unimpressed. Hopefully, I’ll never see him on TV again…
As for goldman, I believe in them. Out of 60,000 employees, you’re are bound to run into a few bad eggs. But from what I’ve heard they are pretty stand up. There will be changed with Regulation, but the GS trial was just a government scheme, the timing is just to close…
IMO, the government has a huge part in this problem. Heck I even remember Bush saying everybody should own a home, and of course he’s a republican. Once an idea is started they all jump on the bandwagon without thinking “Is this prudent, what could the possible outcome be”. Oh well…
Perhaps the truth lies somewhere in the middle, but government is not the righeous bystander they think they are, especially Levin… Disgusting!
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