This Report From ..
What should Wall Street do?
The finance industry needs a better response to the protest movement attacking it.
So the big banks’ apologies for their role in messing up the world economy have been grudging and late, and Joe Taxpayer has yet to hear a heartfelt “thank you” for bailing them out. Summoned before Congress, Wall Street bosses have made lawyerised statements that make them sound arrogant, greedy and unrepentant. A grand gesture or two—such as slashing bonuses or giving away a tonne of money—might have gone some way towards restoring public faith in the industry. But we will never know because it didn’t happen.
On the contrary, Wall Street appears to have set its many brilliant minds the task of infuriating the public still further, by repossessing homes of serving soldiers, introducing fees for using debit cards and so on. Goldman Sachs showed a typical tin ear by withdrawing its sponsorship of a fund-raiser for a credit union (financial co-operative) on November 3rd because it planned to honour Occupy Wall Street.
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This Report From
Oct. 28 (Bloomberg) -- Disturbed, disillusioned and ashamed: Those aren’t emotions you expect a Wall Street quant to express when asked why taxpayers were obliged to bail out wealthy bankers.
Goldmanite Quant Derman Slams Wall Street’s Hypocrisies
Unless, of course, the quant is Emanuel Derman, a particle physicist and former head of quantitative finance at Goldman Sachs Group Inc.
“I am ashamed at the hypocrisies of the system,” Derman writes in “Models.Behaving.Badly,” an erudite yet pleasantly readable exploration of why financial models failed during the U.S. mortgage meltdown and why modelers must learn to use them more wisely.
“We were told not to expect reward without risk, gain without the possibility of loss,” he says in disgust. “Now we have been forced to accept crony capitalism, private profits and socialized losses, and corporate welfare.”
Worth the full read...click here
A better view of Goldman Sachs v Occupy Wall Street and the Little Bank that Can from across the pond.
-Better News, Better Views -
-Better News, Better Views -
Mega-bank Goldman Sachs (assets $933bn), has declared war on one of the smallest banks in New York (assets $30m), the customer-owned community bank that happens to also be the banker for Friends of Liberty Plaza, Inc, also known as Occupy Wall Street. And you thought Goldman didn't care.I love news from outside our borders...seems to always have a good fresh and honest approach....When a Goldman exec saw its gilded name next to Occupy Wall Street, the financial giant expressed much displeasure. In fact, my sources say, Goldman threatened legal action unless the credit union gave up the $5,000 and reprinted the invite sans the Sachs moniker. Goldman Sachs did not respond to our requests for comment on the affair.
So far, it's a cute story: tiny bank uses Goldman's money to fete some tent-dwellers who are denouncing Sachs as the Giant Vampire Squid.
But there's a lot more at stake in this battle than a $5,000 donation gone wrong. Underneath, it's a battle royal for control of tens of billions of dollars in government mandated "community reinvestment" funds.
In 2008, the US Treasury handed Goldman Sachs a check for $10bn from the Troubled Asset Recovery Program (Tarp), the bailout funds given to desperate commercial banks. A few eyebrows were raised: Goldman was not desperate, and it certainly was not a commercial bank. Yet – abracadabra! – Secretary of the Treasury Henry Paulson transformed investment bank Goldman into a commercial bank overnight. (Paulson's prior post was chairman of Goldman Sachs. Just saying.)
But there was a catch: Goldman would have to return a chunk of the public's billions in the form of loans for low-income customers and members of its "community", as required by the Community Reinvestment Act (CRA) of 1977. Problem: Goldman has, it seems, no low-income customers, nor a "community". Goldman was directed to find poor people and a community and hand over some cash.
Read the entire Guardian story...click here