Congress rightfully accuses Goldman Sachs of wrongdoing on betting against their own clients on mortgage-backed securities, but instead of interrogating Goldman Sachs--who will only deny the allegations, why doesn't Congress invite Goldman's burned clients to testify on their own behalf?
The reason is that Congress and the Obama Administration can't cut off the hand that feeds Capitol Hill--they only need to appear to lecture Wall Street to appease the angry masses. Most former and present Goldman Sachs executives will walk free and clear, much like most of Wall Street.
Also, John McCain missed a great opportunity to really stick it to Goldman Sachs CEO Lloyd Blankfein. Sure, he got Blankfein to admit he received a $9 million bonus last year, but he didn't bring up Blankfein making $68 million in bonuses in 2007--from illusory profits from the mortgage-backed securities which were later proven toxic.
The window dressing continues.
Tuesday, April 27, 2010
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Congress barely touched on the fact that what went into these instruments was created within the walls of Goldman. That being the largest fraudulent aspect.
ReplyDeleteThis is a win/win for Goldman, Blankfein, and the administration. Great PR for Goldman as the fall guy and supporter of reform. The administration has support for the bill and comes out a champion.
FYI
There was a secret deposition involving Congress and Goldman prior to yesterdays proceedings.
Appeasing the people with this, while ignoring so many of the other glaring issues that helped create this crisis, is the same as sedating someone who has cancer.
Good insight--I hadn't heard about the deposition, but it makes perfect sense. It's hard not to be cynical when our government and banking "leaders" continuously live down to their degenerate reputations.
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