Goldman Sachs (GS) is perhaps the most hated corporation in America right now. They are taking flak from all sides. Here are just a couple examples:
So, when the public sees those firms pay out huge bonuses again, it should be understandable that commentators such as Matt Taibbi at Rolling Stone conclude that Goldman Sachs is like “a giant vampire squid wrapped around the face of humanity.”
Perhaps Goldman is somewhat more respectable than that. But Volcker is surely right that trading firms that are not deposit-taking institutions should not benefit systematically from any actual or implicit taxpayer guarantees. Whatever the new system is to be post-crisis, such guarantees need to be stopped or the whole system really will be undermined by moral hazard.
Vampire squid needs to be taken off the menu Neil Wilson, Absolute Return + Alpha, September 22, 2009
Blankfein’s trickle-down catechism isn’t working. Now we have two economies. We have recovering banks while we have 10-plus percent unemployment and 17.5 percent underemployment. The gross thing about the Wall Street of the last decade is how much its success was not shared with society.
Goldmine Sachs, as it’s known, is out for Goldmine Sachs.
As many Americans continue to struggle, Goldman, Morgan Stanley (MS) and JPMorgan Chase (JPM), banks that took government bailout money after throwing the entire world into crisis, have said they will dish out $30 billion in bonuses — up 60 percent from last year.
Virtuous Bankers? Really!?! Maureen Down, New York Times Editorial, November 11, 2009