Skip to main content

Area Man Predicts Goldman Sachs Will Take Away Nothing From Its Punishment


In announcing the SEC's settlement with Goldman Sachs last week, Division of Enforcement director Robert Khuzami said that the $550 million settlement should serve as a "stark lesson" to the bank and the rest of Wall Street. And while it's rare for a settlement with the Commission to include an admission of having fucked up, Goldman's conceded it'd "made a mistake," and one that Lloyd Blankfein and Co "regret." Having said that, finance professor Charles Geisst is keenly aware that this charade is a total crock and that by forcing LB and Gary Cohn to hand over whatever cash they had in their wallets on Thursday, the SEC is ensuring the bank will probably do it again, having learned nothing.

“It’s become pretty clear what Goldman has become, and this settlement is an outgrowth of it,” says Charles Geisst, a finance professor at Manhattan College and author of “Collateral Damaged,” a book on the financial crisis. “But a fine is not going to bother these people, quite frankly. A fine is like passing around the church collection plate and collecting a few extra bucks for sins.

Clearly Geisst knows that a fine ain't gonna do shit. "These people" have so much money, it won't mean anything. I think we all know what Bobby Khuzami would've sentenced Blankfein and his associates to if he'd really wanted to ensure they'd never do anything like this again, which he obviously doesn't.


Ted Cruz's Wife Taking A Little Break From Goldman Sachs

As a seasoned money manager, she's made sure to hedge her bets on how long that break might be.

Area Man Recounts Brush With Greatness

In this case, greatness being Lloyd Blankfein's glistening, stark-naked body. Mr. Smith outlines moments when he came into close contact with Goldman’s chairman and chief executive, according to pages reviewed by The Wall Street Journal. Mr. Smith tells of one near-encounter when he saw Mr. Blankfein, sans clothes, after taking a shower at the gym. Mr. Blankfein was “air-drying,” Mr. Smith writes, something Mr. Smith took not as a display of power but as something men of an older generation tend to do. Another up-close-and-personal moment with the big boss came when Mr. Blankfein and Berkshire Hathaway Inc. Chief Executive Warren Buffett walked through the Goldman trading floor the day after Mr. Buffett’s $5 billion investment as Goldman was reeling in 2008. In the book, Mr. Smith says he had a co-worker snap a photo as he stood near Mr. Buffett. Greg Smith: I Saw Blankfein Naked [Deal Journal]