Goldman Sachs (GS) is the firm that everyone LOVES to HATE and for good reason. Not only does this firm bear unreasonable power in the world financial structure, it is so intertwined with the U.S. Government, that the term "Government Sachs" has now emerged in our lexicon.
To be fair, GS is the premiere investment banking firm. But, to be honest, did they achieve that position fairly? Marko's Take says NO!
Most obviously is the revolving door between high level GS executives and high level government posts. A partial list includes the following: Rahm Emanuel, Jon Corzine, Hank Paulson, Tim Geithner, Neil Kashkari, key Treasury players Dan Jester, Steve Shafran, Edward C. Forst, and Robert K. Steel. The list goes on and on.
The conflict of interest is OBVIOUS and very ominous.
But, the conflicts don't stop there. A senior Goldman Sachs executive sent an e-mail message to clients recently disclosing that the firm’s Fundamental Strategies Group might have shared investment ideas with the firm’s proprietary trading group, or some clients before sharing them with others.
The e-mail message, obtained by DealBook, demonstrates the various conflicts that Goldman and other firms face in balancing the interests of its various clients and its own trading operation.
“We may trade, and may have existing positions, based on trading ideas before we have discussed those trading ideas with you,” Thomas Mazarakis, head of Goldman’s Fundamental Strategies Group, wrote (http://dealbook.blogs.nytimes.com/2010/01/12/goldman-executive-discloses-conflicts-policy/).
Marko's Take? What a great bunch of guys!
GS is also believed to be one of, if not, THE CONTROLLING OWNER of the FED!
Still not enough? A highly secretive entity, known as the "Plunge Protection Team" (PPT), is also believed to be directed by GS. The Working Group on Financial Markets, known colloquially as the PPT, was created in 1988 by Ronald Reagan, in response to the Black Monday stock market crash in 1987. Their operations have always been shrouded in secrecy, with a Washington Post article from 1997 writing that the group aims to prevent the "smoothly running global financial machine" from locking up.
If GS in indeed involved in market operations, that would explain the firm's enormous profitability which emanates primarily from its trading book, not lending as its bank mandate would suggest. Nothing like having a little inside information, trading ahead of clients and minting money through the FED (sarcasm intentional)! Nothing like having all your executives get cushy government jobs when they get tired of $50 million bonuses (sarcasm intentional)!
Until the FED's, Goldman's and the Treasury's surreptitious activities are disclosed, reviewed and audited will we know the real truth. However, the circumstantial evidence is quite damning. Marko's Take? Let's put these folks under the microscope and, if necessary, CLEAN HOUSE!
Think I'm being unfair to big ole Goldman Sachs? TAKE ME ON!
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