By Matt Levine – Do read/listen to the story though! It’s fascinating …
… wait. Is that not how it’s supposed to go?
One conclusion you might draw from the tapes is that the regulators and the banks had a very different conception of what social practice they were engaged in.
Goldman was helping Santander play a game against its regulators, while the New York Fed just wanted to be friends with Goldman and not make too much trouble.
It certainly makes it easier to win a game if the other side doesn’t know it’s playing. more> http://tinyurl.com/lq9l238
Posted in Banking, Business, Economy, Education, History, Leadership, Media, Regulations
Tagged Business, Capital, Financial crisis, Goldman Sachs, Government, Industrial economy, Monetary policy, New York Fed, United States
What Money Can’t Buy: The Moral Limits of Markets, Author: Michael Sandel.
By John Farmer Jr. – Bank of America has agreed to pay $11.8 billion to settle charges related to mortgage servicing abuses, such as fabricating affidavits of title; Intel has agreed to pay $1.25 billion to settle antitrust charges that it retaliated against computer manufacturers who refused to put the Intel inside; Goldman Sachs has agreed to pay $550 million to settle claims that it sold subprime mortgage instruments that it had designed to fail.
It also turns out that they are quite adept politically, these constitutionally recognized “persons” who (thanks to the current majority on the U.S. Supreme Court) can spend virtually unlimited amounts of money influencing the political process. Wal-Mart Stores Inc., it was disclosed last week, has been lobbying to change the federal law prohibiting bribery of foreign officials, a law that it is alleged to have violated in Mexico. Wal-Mart denies lobbying, though it belongs to groups that do.
The problem clearly runs deeper than a rogue financial adviser or two; it extends beyond Wall Street, and even Main Street USA, to some of the most powerful corporations in the world. It involves thousands of “real” people acting under the corporate umbrella.
What are we to make of this spate of corporate scandals? more> http://is.gd/QH1o9P
Posted in Banking, Book review, Business, Economy, Leadership
Tagged Banking reform, Goldman Sachs, Intel, Leadership, Mexico, Michael Sandel, Organization, United States, Wall Street, Walmart