Goldman Sachs Still Juggling Dangerous Investments?

July 27, 2009

US (ChattahBox) – A new report by The Huffington Post has pointed out the continuing trend of bad lending from Goldman Sachs, the risk that others are on the verge of following, and the fact that the Federal Reserve is allowing it.

Goldman Sachs petitioned for a status change that would allow them to receive bailout funds. While they have already paid those funds back, they have also remained exempt from the strict regulations that come with it, by claiming that they need more time to construct a new business model.

In the meantime they have been taking huge risks with subsidized loans, and without the oversight promised by the Fed.

“The only difference between Goldman Sachs today and Goldman Sachs last year is that today, the company is officially gambling with government money. This is the very definition of ‘heads we win, tails the taxpayers lose,'” a letter from Congress, which is expected to call out the Federal Reserve on their lack of oversight, was quoted.

But the problem goes beyond the risks taken. The fact is, they have paid off, while other Wall Street bigwigs like Morgan Stanley have reported huge losses following an honest, low risk model.

The report points out that this is a highly dangerous outcome, as it is sure to cause the various financial companies currently behaving to fall back into their old ways.

Could we be just a few profit losses away from being right back on a collision course again?


Comments

3 Responses to “Goldman Sachs Still Juggling Dangerous Investments?”

  1. Artistry and Juggling » Blog Archive » Goldman Sachs Still Juggling Dangerous Investments? | ChattahBox … on July 27th, 2009 4:34 pm

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  2. Posts about Huffington Post as of July 27, 2009 » The Daily Parr on July 27th, 2009 4:36 pm

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  3. Artistry and Juggling » Blog Archive » Goldman Sachs Still Juggling Dangerous Investments? on July 30th, 2009 1:16 am

    […] Another fellow blogger added an interesting post on Goldman Sachs Still Juggling Dangerous Investments?Here’s a small teaserUS (ChattahBox) – A new report by The Huffington Post has pointed out the continuing trend of bad lending from Goldman Sachs, the risk that others are on the verge of following, and the fact that the Federal Reserve is allowing it. … […]

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