• Tips gratefully accepted here. Thanks!:

  • Recent Comments

    riverdaughter on The Fool
    Propertius on The Fool
    Ivory Bill Woodpecke… on The Fool
    riverdaughter on The Fool
    Propertius on Once they’re in, you can’t vot…
    Propertius on Once they’re in, you can’t vot…
    Propertius on The Fool
    riverdaughter on Once they’re in, you can’t vot…
    riverdaughter on Once they’re in, you can’t vot…
    Propertius on “Pet Peeves”
    Ga6thDem on Once they’re in, you can’t vot…
    Propertius on Once they’re in, you can’t vot…
    Beata on Once they’re in, you can’t vot…
    Beata on “Pet Peeves”
    Beata on “Pet Peeves”
  • Categories

  • Tags

    abortion Add new tag Afghanistan Al Franken Anglachel Atrios bankers Barack Obama Bernie Sanders big pharma Bill Clinton cocktails Conflucians Say Dailykos Democratic Party Democrats Digby DNC Donald Trump Donna Brazile Economy Elizabeth Warren feminism Florida Fox News General Glenn Beck Glenn Greenwald Goldman Sachs health care Health Care Reform Hillary Clinton Howard Dean John Edwards John McCain Jon Corzine Karl Rove Matt Taibbi Media medicare Michelle Obama Michigan misogyny Mitt Romney Morning Edition Morning News Links Nancy Pelosi New Jersey news NO WE WON'T Obama Obamacare OccupyWallStreet occupy wall street Open thread Paul Krugman Politics Presidential Election 2008 PUMA racism Republicans research Sarah Palin sexism Single Payer snark Social Security Supreme Court Terry Gross Texas Tim Geithner unemployment Wall Street WikiLeaks women
  • Archives

  • History

  • RSS Paul Krugman: Conscience of a Liberal

    • An error has occurred; the feed is probably down. Try again later.
  • The Confluence

    The Confluence

  • RSS Suburban Guerrilla

    • Of course they do
      The FBI gathered a huge file on Kavanaugh through its tip line & handed it with a bow to Don McGahn at the White House. It then became an oppo file to control Kavanaugh. Who has that file today? Surely Donald Trump has a copy. McGahn likely too. https://t.co/0kfJBOsveh — Wouter van der Horst (@DerWouter) … Continue reading Of course they do
  • RSS Ian Welsh

    • Week-end Wrap – Political Economy – October 2, 2022
      Week-end Wrap – Political Economy – October 2, 2022 by Tony Wikrent   Global power shift as USA and west commit suicide by neoliberalism The U.S. Is Winning Its War On Europe’s Industries And People  [Moon of Alabama, via Naked Capitalism 9-27-2022]   The epidemic “‘Other Places in the Country Didn’t Do This’: How One California Town Survived Covid Better Th […]
  • Top Posts

Goldman-Sachs Set to Post Quarterly Earnings of More than $2 Billion

Vampire squid or Goldman trader?

Vampire squid or Goldman trader?

Well, well, well.

Up and down Wall Street, analysts and traders are buzzing that Goldman, which only recently paid back its government bailout money, will report blowout profits from trading on Tuesday.

Analysts predict the bank earned more than $2 billion in the March-June period, thanks to its trading prowess across world markets. If they are right, the bank’s rivals will once again be left to wonder exactly how Goldman, long the envy of Wall Street, could have rebounded so dramatically only months after the nation’s financial industry was shaken to its foundations.


Startling, too, is how much of its profits Goldman is expected to share with its employees. Analysts estimate that the bank will set aside enough money to pay a total of $18 billion in compensation and benefits this year to its 28,000 employees, or more than $600,000 per employee. Top producers stand to earn millions.

Gee, I wonder how they did it? It wouldn’t have anything to do with that “secret, rapid-fire, stock- and commodities-trading software” that former employee Sergey Aleynikov was arrested for stealing, would it?

It wasn’t just Goldman that faced imminent harm if Aleynikov were to be released, Assistant U.S. Attorney Joseph Facciponti told a federal magistrate judge at his July 4 bail hearing in New York. The 34-year-old prosecutor also dropped this bombshell: “The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways.”

How do we know Goldman-Sachs hasn’t been using the program for just that purpose? Because Goldman employees Barack Obama and Tim Geither say so? Sorry, I’m not buying it.

Goldman’s massive profits probably didn’t have anything to do with the taxpayer money they got to use interest free for months either–or the billions they extracted from AIG, causing

the firm’s collapse, and the ensuing financial catastrophe that to this day has been propped up only thanks to the US government’s backstop of nearly $10 trillion in various worthless assets.
causing the that giant corporation to collapse

This is an interesting blog post on Goldman’s involvement in the Sirius bankruptcy and the merger of Sirius and XM that I don’t completely comprehend, but this part that refers to the Goldman “doomsday” software (referred to above) makes a lot of sense to me.

They say something is only illegal if you get caught, In Goldman Sachs case, it’s not illegal to front-run markets or securities because their is no government nor law enforcement agency more powerful than Goldman Sachs itself. They are above being caught. They are above prosecution. Goldman Sachs is the government. President Obama is the perfect puppet through no fault of his own. His inexperience provides the strings. The dollars Goldman Sachs provide in campaign contributions decide the future of every individual American. You can’t beat city hall, and you can’t beat Goldman Sachs. In the end, it’’s just that simple. Arrests such as Bernie Madoff are authorized only when the public is looking for a scapegoat. America has been robbed again, and a 70 year old scam artist that the government has known about for decades has taken the fall for all of the stock market criminals.

I have no doubt that as soon as Goldman Sachs figures out a way to get its proprietary stock manipulation program to work with the uptick rule reinstated, that the rule will again be put back into effect for the Government’s ability to promote itself as a watchdog of investor confidence. Of course, John Q. Public will have no knowledge of this. Will Sirius XM stock begin to trade on its merits at that time? I doubt it. Unless of course Goldman Sachs decides that such a move would be profitable to its bottom line. Eventually retail investors will become frustrated, sell their SIRI shares to the likes of Goldman Sachs for pennies on the dollar, only to buy them back for much more in years to come.

It’s no wonder The New York Times quotes a competitor as calling Goldman Sach’s traders “Orcs.” And then there’s Matt Taibbi’s even more colorful description of the powerful investment bank:

“a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Reuters suggests that Goldman’s “profit bonanza could stoke anger.”

Ya think?


(It’s just like Obamaland without the Kool-aid)

This is an open thread