This year, Goldman spent $800,000 in one quarter in order to lobby the federal government on Dodd-Frank reform and on other financial issues according to Bloomberg Businessweek. Lobbying can and has been able to corrupt the political and financial system; for example, the lobbying for deregulation helped create the present financial mess.
Goldman Sachs spent $800K on 3Q lobbying.
Bloomberg Businessweek in WashingtonGoldman Sachs Group Inc. spent $800,000 in the third quarter to lobby the federal government on rules for implementing the Dodd-Frank Wall Street reform act and on other financial services issues, according to a disclosure report.
That's 2.5 percent more than the $780,000 the New York bank spent in third quarter of 2010, and 26 percent less than the $1.08 million it spent in the second quarter of 2011.
Goldman Sachs lobbied members of Congress, the Federal Reserve, the Securities and Exchange Commission and the Commodities Futures Trading Commission on implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, securitization and other issues related to financial industry.
Banks are spending heavily to influence the writing of rules that stem from the Dodd-Frank act, which was passed last year. Named for former Sen. Christopher Dodd and outgoing Rep. Barney Frank, the new law was written to overhaul the financial system and curb practices that were thought to be responsible for the financial crisis.
Opaque, highly complex, but lightly-regulated derivatives contribute to large profits at investment banks like Goldman Sachs, but were at the heart of the financial crisis of 2008. Wall Street traders create these securities to bet on the value and risk of loans such as home mortgages and credit cards.
The new Dodd-Frank act has written rules aimed at preventing Wall Street traders from taking too much risk. It calls for the trades to go through a central exchange and for their prices to be reported. This new law could cost the banks billions of dollars in revenue, which is why banks like Goldman are lobbying regulators writing the new rules.
Goldman is one of the largest commodities trading houses in the world and is trying to influence policy that affects that business. It lobbied the White House on energy policy.
In recent years, there have been allegations that Wall Street's speculation in the commodities markets has led to wild gyrations in prices, which has driven up food and oil prices. New rules have placed curbs on how much of one type of bet traders can make on a single commodity. Many banks oppose these rules.
Read the article here
2 COMMENTS:
Dear Mr. Blankfein
When you sold Littton Servicing to Ocwen this year, did you bother to find out anything about the way Litton was treating its customers? From 2007 to 2011 there have been hundreds of complaints against Litton, the company you bought and were responsible for.
If you read these complaints, you will see that Litton is not a great company. Its reputation was already tarnished in 2005 before you bought the company. At that time, customers were filing "a class action complaint charging the company with violations of federal and state law." (http://www.lieffcabraser.com/cases.php?CaseID=52 ).
Why would you buy such a company? Oh, I forgot, you wanted to buy as many sub-prime mortgages as you could, so damn the company's reputation! In fact, the worse the reputation, the better perhaps.
Goldman Sachs was supposed to be a bank that everyone emulated. I have not a clue why they would be so enthralled. Litton's customers weren't.
Just read this one customer's complaint which should wrench your heart with pain:"
" I have a sub-prime loan that is scheduled to adjust every six months. I have never been late on my mortgage and my credit is good. I received a letter from Popular Mortgage stating that my monthly mortgage payment will be increasing on 11/1/08 and if there would be a problem with the increase I need to contact Popular. I immediately called Popular and explained to them that because of the economy I could not afford an increase at this time and I submitted all the required documentation to get a loan modification. Popular sold the loan to Litton Loan Servicing LP and I began the process again I submitted all the paper work and Litton Loan Servicing LP sent me [a] letter.
Litton Loan Servicing states I do not have sufficient income to support a loan modification which would lower my payments instead they raised my monthly payment almost $200.00 dollars. I complained to the Better Business Bureau and this arrogant company did not even respond to the Better Business Bureau. BBB has made several attempts to contact the business regarding the referenced complaint. [They] have not received a response from the company.
I cannot afford the increase in my mortgage payments and it is just a matter of time before I am delinquent and loose my home to foreclosure. I believe it is unfair that the banks get Billions from the government and the homeowner gets absolutely no help. If you can help, please I need it now.
Cannot sleep, headaches and other problems. " Exomar of Altadena, CA
Mr. Blankfein, do you see the agony you have caused with your furious gallop to the wealth goal, with your lack of attention to the kinds of companies you buy for your own purposes?
There are many more of those that you should read and weep over. Many complaints can be found here: http://www.consumeraffairs.com/finance/litton_loan.html
Sincerely
One Who Believes in the Better Nature of Humankind
(I haven't even mentioned all the foreclosed customers that committed suicide.)
Inside Capitol, Investor Access Yields Rich Tips When Senate Democrats finally brokered a compromise over the proposed
health-care law, a group of hedge funds were let in on the deal, learning
details hours before a public announcement on Dec. 8, 2009.
The news was potentially worth millions of dollars to the investors, though
none would publicly divulge how they used the information. They belong to a
select group who pay for early, firsthand reports on Capitol Hill.
Seeking advance word of government decisions is part of a growing,
lucrative—and legal— practice in Washington that employs a network of brokers,
lobbyists and political insiders who arrange private meetings ...http://online.wsj.com/article/SB10001424052970204844504577100260349084878.html?
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