Moon Kil Woong

When Goldman Might Have Failed

For me the issue is not the profit Goldman made from the government but the fact the government is trying to help financial companies from tanking by letting them make profit so they can bolster their balance sheet. Rather than do this GS and others spit in the taxpayers face, refuse it by paying back TARP funds saying they never needed it (a baldface lie) and then use all their profit not to make loans or improve their VaR by adding it to their balance sheet but to pay out billions to their executives.

How does this help justify bailing them out or saving them. The amount of risk Goldman is taking is still not acceptable according to Fed standards. Thus they still pose a systemic risk by not being able to adhere to VaR or proper leverage. Rather than improving their balance sheet they did 3 things this quarter. #1) they begged the FDIC to waive their capital requirements because they don't have enough assets 2) Announced that they were paying huge record bonuses, 3) Announced that they were planning on leveraging themselves even more in the market in the future.

This obviously doesn't sit well with me and shouldn't sit well with anyone else either. What Goldman is doing violates the spirit and intent of taxpayer bailouts.