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Until they get caught (and heavily fined). Whereupon management suddenly decides that maybe those practices weren't so "tight" after all.
by kafkaesq 10y ago
Until they get caught (and heavily fined). Whereupon management suddenly decides that maybe those practices weren't so "tight" after all.
- notyourwork 10y agoAbsolutely right! Its usually context specific.
- qaq 10y agoThe only reason GS is still around is because they did what they did. They protected their shareholders the fine is trivial (less than 10%) compared to the losses they would have taken if they followed the course of action that everyone else did.
- kafkaesq 10y agoA $13b bailout on suspiciously favorable terms had something to do with it, also.
- qaq 10y agoWhat is suspiciously favorable about it? the terms were uniform. The real kick back to all banks was the unwind of AIG.
- kafkaesq 10y agoWhat is suspiciously favorable about it? I trust that you're aware of the basic chronology. If not, it should be fairly easy for you to look into.
- qaq 10y agoYep and? Every IB had to secure a deal GS got money from Berkshire Hathaway, everyone else got acquired Lehman could not secure a deal. Unlike in every other deal government was not providing downside guarantees for Berkshire Hathaway investment in GS. Government did provide huge guarantees to JPM and every other bank that acquired an IB.