Friday 28 August 2009

Goldman Sachs: the never ending story

There are many stories about Goldman Sachs these days.
A good thing.

I ask myself, how can a banker play golf in a Saturday knowing his bank initiated an economic downturn by taking risks he never understood in the first place. People are suffering, there is rising unemployment and as a banker you deny any responsibility

About Goldman. From de NY Post:

Treasury Secretary Hank Paulson let the cat out of the bag when he confessed on a cable TV show that it was "my job to talk regularly to market participants . . ."
Paulson had been the chairman of Goldman right before taking the job as head of Treasury.
So, if he felt it was his "job" to talk with people on Wall Street then who else would he speak with if not his old friends at Goldman?
The head of the US Treasury would, of course, know lots of secrets. In the olden days, this would be called "inside information."
And despite Paulson's contention it would be entirely inappropriate for him to discuss sensitive matters with people who could profit from the information. It is, in fact, illegal. And the penalty could be jail time.
What has been of particular interest to me is whether Paulson contacted his friends at Goldman after a lunch with Federal Reserve Chairman Ben Bernanke on Thurs., Aug. 16, 2007.
That day Wall Street seemed to get wind of the idea that the Fed was planning to do something big, and stock prices rallied strongly at the very end of that trading session. The very next morning Bernanke cut interest rates, the first of many such moves.
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