Senator Pryor asks this question. Dan Sparks hems and haws. Says he hasn’t thought about it enough to respond. Josh Birnbaum says it’s complicated – too much credit sloshing around - and says we all contributed. Sparks concurs. I say: Yes, that’s right. Goldman and many other institutions and individuals brought the economy down. The financial crisis was a collective cultural failing. The only truly interesting and relevant issue in the Goldman hearing is this: Should Wall Street bankers behave more ethically by selling only products they believe in? The answer: It’s up to the bankers and their employers. The rest of us need to invest more prudently. (By the way, the core issue isn’t about banks’ disclosure obligations- customers of the notorious CDO had access to info about the toxic junk it contained.)
Posted by Gabriella Stern
on April 27, 2010
Investment Banking, Regulation, Securities & Exchange Commission
Investment Banking, Regulation, Securities & Exchange Commission
2 Comments to Goldman: Did It Contribute To the Economic Crisis?
Tweets that mention Randomly Noted » Blog Archive » Goldman: Did It Contribute To the Economic Crisis? -- Topsy.com
April 28, 2010
April 28, 2010
[...] This post was mentioned on Twitter by Randomly Noted. Randomly Noted said: New Blog Post: Goldman: Did It Contribute To the Economic Crisis? http://newswires-americas.com/randomnotes/?p=7255 [...]
April 27, 2010
The point is not who misbehaved and who didn’t. The point is whether the country would be better off if investment banks were more tightly regulated. The crisis seems to give a YES answer. Let us know if the senators ask the right question.