Goldman is an extremely convenient target for an administration on thin ice. Fortunately for O!, GS's greed resulted in it painting a bullseye on the back of its own shirt.
While the fraud suit may be politically motivated, the facts do seem to support a case. Accordingly, GS makes an incredibly suitable target, one that efficiently deflects public anger away from the Administration at a time when the GOP, also stupidly, resists any effort to strengthen regulation.
Like all politics, the suit is awash in symbolism, viz:
First, GS are genuinely bad guys and deserve some sort of punishment. Apart from legalisms, an ethical company does not sell stuff to its clients which it intends to short.
Second, they have made money on these shorts off the backs of the taxpayer via the AIG bailout. Lots of mostly unsophisticated folks get this; it does not sit well.
Third, their paychecks are outrageous, esp. since a substantial part came from taxpayer money.
No matter what Lord Blankfein may say now, the company was indeed on the brink during the darkest days. It indeed got bailed out. However, using taxpayer money for outrageous bonuses is politically stupid.
If it had somehow found a way to restrain its greed, the case may not have been filed.
Greed is not good. It is the death of everything good. |
