Tuesday, May 12, 2009

Boston Globe: Goldman Sachs' Massachussetts Settlement Not Good Enough

Scott Van Voorhis of the Boston Globe says Massachussetts' plea deal is letting Goldman Sachs off too cheaply:
Attorney General Martha Coakley has managed to wring $60 million out of Goldman Sachs for its role in subprime mortgage mess.

Ho hum.

I am sure it wasn’t easy, but don’t expect those Wall Street types to be running for cover.
Goldman, like other Wall Street firms, made a lot of money securitizing subprime loans and selling them to investors.

We all know how that worked out.

Anyway, while $60 million may be a lot to most normal people, it’s lunch money on Wall Street
Bloomberg puts it into perspective.

It’s about what Goldman Sach’s fixed-income currencies and commodities division made in a day and half back in 2006, the news service reports.

That same division raked in an astonishing $14.3 billion in revenue that year.