GoldmanSachs666 Message Board

According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Friday, April 23, 2010

Goldman Sachs Gives Reason for Breakup of Too Big To Fail

 As I and other are saying, the true story of the SEC suit against GS will not necessarily be about Goldman Sachs.  It will in fact be about the our entire financial industry specifically the Too Big Too Fail companies that are, in my opinion just too big to operate properly.  Bigger is not better, which has been proven many times over.  The mergers and acquisition mania of the 80's certainly proved that point when these new mega corporations began divesting themselves of their acquired baggage and went back to their core base business.  

Bigger is not better has also been proven by our very own government whose growth has created less efficiency as the ability to properly manage erodes.

Simon Johnson makes some very good points in the article below.

Big Bank Breakup Time Gets Boost From Goldman:
Simon Johnson  Bloomberg BusinesWeek

April 23 (Bloomberg) -- Much of the discussion around the Securities and Exchange Commission case against Goldman Sachs Group Inc. has focused on the legal issues. To the extent there has been analysis of the political dimensions, the focus has been mostly on how this may affect the fate of Senator Christopher Dodd’s financial overhaul bill.
These issues are interesting, but we shouldn’t lose track of the broader economic and political context for this case.
The SEC lawsuit and associated discussion make clear three points:
First, Goldman Sachs had great difficulties managing its operational and reputational risks during the boom. In testimony before the Senate Banking Committee in February, Gerald Corrigan, former head of the New York Federal Reserve Bank and a longtime Goldman Sachs executive, argued that the firm’s risk- management systems are world class. That may be the case, but “world class” looks much less than perfect when Goldman Sachs treats so many of its customers in the fashion described in the SEC’s suit.
This reinforces the widely held -- and correct -- notion that our largest banks have become too big and too complex to manage properly. (emphasis added)
  READ here


Post a Comment