Drudge headline – Goldman would be enriched by Dodd bill
Increased regulation hampers primarily the smaller financial institutions thereby strengthening the relative position of the biggest firms like Goldman Sachs.
Goldman Sachs gave just a tad less than a million dollars to Obama’s campaign fund.
The Democratic Party and its leader Obama are presuming Goldman guilty in the court of populist rhetoric and using the alleged offenses to justify new regulation.
The argument follows the line that it was fraudulent activity by Goldman Sachs executives that nearly brought financial ruin upon the United States and much of the rest of the world. Despite the severity of the alleged offense no criminal charges have been filed. Should they choose to do so, Goldman could seek settlement for a fine paid by the firm. Under the provisions of the Section 7 Fraud Statutes the fine would conclude the matter and effectively bar any follow-on lawsuits from injured parties.
Goldman’s customers are sellers for whom they structure and sell securities and investors who buy these same securities. Goldman’s statement that they “always put the customer first” is a snickerworthy pledge. Which customer? They represent both sides of the same transaction.
What is going on here is mostly politics. The inference that Goldman brought down the economy is absurd. That is not to declare Goldman innocent of wrongdoing. Nonetheless, it looks like Goldman is participating as a reluctant but willing scapegoat in order that regulation enacted might be favorable to them.