Hedge Fund Managers Less Than Thrilled With Goldman Sachs President’s Interpretation Of Who Caused The Financial Crisis, Why Banks Don’t Need Increased RegulationBy Bess Levin
At a panel yesterday in Davos, Goldman Sachs president Gary Cohn, perhaps testing out a few new jokes he’s hoping to use at the Laugh Factory‘s open mic night next week, made several interesting statements. The first was his reason for why banks shouldn’t be subject to greater regulation.
Mr. Cohn warned that greater regulation of banks would push risky activities into the “shadow banking sector” which he said was “less regulated” and “opaque.”
Mind you, we have no reason to assume Gary was saying any of this out of self-interest. He’ll have you know Goldman Sachs LOVES regulation. The more the better. He’s just doesn’t want Goldman and the other banks to be selfish and take more than they need when there are others who could really benefit from increased supervision, like the “unregulated” businesses that apparently caused the last financial crisis and might cause another, if we’re not careful.
“What I most worry about,” said Mr Cohn, “is that in the next cycle, as the regulatory pendulum swings, we are going to have to use taxpayer money to bail out unregulated businesses that, unlike the banks in the last crisis, may not be able to repay them.”
He continued. Read more »
And in case you were wondering, the answer is yes. Facilitate does translate loosely to “reach-around.” Read more »
Being in the business of “facilitating clients,” as Gary Cohn likes to put it, seems like the most profitable game in town these days.
Goldman Sachs just revealed in an SEC filing that its traders made money on every single trading day last quarter, a record for the firm. Net revenue for trading was $25 million or higher in all of the first quarter’s 63 trading days with 35 of those days bringing in more $100 million, according to the filing. Read more »
Lloyd Blankfein and Gary Cohn, daring you to even suggest their exposure to AIG was anything but immaterial. Don’t say it. Don’t even think it. You are, however, welcome to suck on their prestige. [Annie Leibovitz, Vanity Fair]