As you know, we've been chronicling the financial services space's Israel-Palestinian conflict, otherwise known as Gasparino v. Goldman Sachs. The catfight broke out last Thursday, when Chaz reported that GS had held a double top secret meeting hours after Geithner's Congressional debut, the topic of conversation being a lack of confidence in T. Geith. Goldman Sachs called BS on the sit-down being a secret or about T-bone, Chaz said they were lying and should change their ticker to BS, and then Joe Kernan, in a successful effort to egg CG on, claimed that the bank's spokesman, Lucas van Praag, had the distinction of being the only GS employee whose family's story was the basis for The Sound Of Music. What would be next, we wondered with detached interest, only in so much that, as humans, we enjoy watching the time-honored tradition of Jewish and Italian mafias battling over Wall Street supremacy. But this morning, all was silent.
We should've known the silence was indicative a bomb about to be dropped, but, foolishly, we assumed we were in the presence of a ceasefire. And then, this: a surprise strike by Gasparino, so violent, we're not sure how GS will recover. In fact, we don't even know if something like this is legal, so if someone could weigh in, that'd be top notch:
But the trouble in Goldman-land, is not just of the financial, or balance-sheet variety. It's more like a crisis in confidence. To be sure, Goldman Sachs isn't going out of business any time soon--or even ever; in fact, I expect the firm to expand in the coming months. (The firm's CFO, David Viniar, recently stated that he feels so confident about the future that he's now looking for ways in which Goldman could give back the government funding it took last year.) And rumors continue to swirl that Goldman may somehow team up with Citigroup in some type of reverse merger that gives Goldman access to Citi's massive balance sheet.
How are the Masters even supposed to respond to such hideous allegations?
Has Goldman Lost Its Swagger? [Daily Beast]