I have little to add to Greg Smith's opinions re: Goldman Sachs, except that the response of Goldman Sachs was strange (if not myopic and narcissistic)--directed to its employees rather than its unfortunate customers or the general public (the purported audience of Smith's piece). However, a good point is made in Forbes:
Deeper Inquiry Of Greg Smith's Assertions: Might Goldman Sachs Have Intentionally Precipitated The Financial Crisis? - Forbes: "In the aftermath of the financial crisis, Congress held hearings as to how and why it happened. The Dodd-Frank Act attempts to impose systemic protections from a mechanical standpoint. While in committee, the Bill also attempted to impose behavioral protections by requiring brokerage firms be held as fiduciaries to their customers. The industry’s powerful lobby ensured that requirement didn’t make it out of committee. Instead, Congress directed the U.S. Securities & Exchange Commission to “study” the issue. Currently, the SEC is headed by Mary Schapiro, who is formerly the head of FINRA, the brokerage industry’s trade organization. The current proposals by the SEC include a watered down fiduciary standard.
It is the lack of a fiduciary standard that is at the heart of Mr. Smith’s assertions. There is little doubt that the larger financial crisis stems from the sub-prime mortgage crisis. Goldman Sachs has already pled guilty to civil charges that it defrauded customers. . . " (emphasis added)
Tweet Follow @johnmpoole
- ► 2015 (104)
- ► 2014 (368)
- ► 2013 (380)
- Tax reform--it is not going to go away
- Ford Motor Company: The Future is Now
- Why Most Tech Start-ups Don't Succeed
- Penal-Industrial Complex: Crony Capitalism At Its ...
- Those who know you best: Specter on Santorum
- Santorum "loses it" in Wisconsin, uses profanity [...
- Android Wins Windows Phone Challenge, But Microsof...
- The Real Leadership Lessons of Steve Jobs
- Android: 'Key Lime Pie' comes after 'Jelly Bean'
- Why people aren't in the stock market
- Reality Check: Eurocrisis Is Far From Over
- Goldman Sachs and a fiduciary standard
- GOP Race: Land of Lincoln delivers for Romney
- Santorum endorses Romney! [VIDEO]
- Puerto Rico: Señor Romney Sí! Señor Santorum No!
- Wingnuts, yahoos, and the GOP: Missouri Chaos
- Start thinking about 5G wireless [video]
- Ann Coulter on Sarah Palin, con men and charlatans...
- Bill Gross on Bloomberg--worth listening to
- America’s Future [video]
- Eurozone: Running Out of Options
- Three Things About the New iPad [video]
- Who's in charge of the Republican primary process?...
- In Greece Nothing Succeeds Like Failure
- Why President Obama will not win Florida in Novemb...
- Eric Schmidt's keynote at Mobile World Congress 20...
- Some words of advice for Mitt Romney
- Election2012: Rhetoric vs. Reason
- Rush Limbaugh and the Attention Economy
- Go Bo Go! - Pet Lovers for Obama
- Rick Santorum: Candidate of, and for, the Ignorant...
- What ecosystem are you buying into?
- ECB: fixing the problem or delaying the day of rec...
- ▼ March (34)