Who is the US Attorney's superhero ?
April 30, 2010
1970s children's cartoon show Hong-Kong Phooey starts out with the question, "Who is the Super-hero ?" emblazoned across the US media today is the initiation of criminal proceedings against Goldman Sachs investment bank (triggered perhaps by political dissatisfaction with the Senate hearings).
GS's share price has fallen 8.42% today in today's trading session thus far. More importantly the name is being dragged through the reputational mud. So much for the money spent on lobbying and maintaining the GS alumni network.
More interestingly are the references to the US Attorney's office in Manhattan - noone is mentioned by name as leading this prosecution. Does this mean it is a political game being played for which no aspiring attorney wants to be smeared. After all, how does one finance their election campaign after going after an investment bank with rather deep pockets ?
One would suspect, were there a robust case that an ambitious Attorney would go public into battle with an eye on being a future NY Mayoral candidate, Senator, President etc.
For Goldman Sachs clearly the bank's share price will recover though sadly the reputational blow even if reduced to the odd joke on bulletin boards will remain for a generation as will the general impression that "it was Goldman Sachs fault" - forget the other banks and institutions playing this game - however the US Government own stock in the others - so expect a willing conspiracy of silence amongst the rest of the industry.
It's never easy being Number one!
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