This chart shows Goldman Sachs Government: The Revolving Door. It should go without saying that whenever a single company has such a presence in government, the will of that company will receive special attention from government policies. It’d be far better if there were a strong diversity of companies represented from all states and all sizes. Instead Washington seems to favor big corporations that have a dominant presence in places like New York.
Goldman Sachs government lobbying has increased dramatically since 2000—from under $1 million to nearly $5 million.
SOURCE (see lobbying)
Bloomberg published an article about how Goldman Sachs has taken advantage of a loophole that allows them to continue to bet with taxpayer-insured money, and Neil Barofksy went on Bloomberg TV to talk about it.
Barofsky warns that we need simpler legislation—as opposed to 30,000 pages of rules, riddled with caveats—and that without simpler legislation megabanks will “drive their Mack truck through all of these loopholes.”
The principle here is that megabanks shouldn’t be allowed to make wagers with taxpayer-backed money. Unfortunately, that rule isn’t in place, even after the recent financial crisis. We agree with Barofsky that it should be, and we propose that one way that citizens can voice their opinion on this issue is by leaving the megabanks (which continue to gamble with taxpayer-insured money) and supporting local lenders instead.
Here is more from Barofsky:
“We need a clear Volcker Rule at the very minimum that doesn’t have all these exceptions and loopholes so they can drive these trucks through them. Or an even better idea: let’s spin these things off entirely. Let’s go back to a form of Glass-Steagall so we’re not subsidizing risky bets.”
Also: “We should be critical of the power and influence [Goldman] had to create the loophole in the first place.”
flickr image from bionicteaching