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So, just what is Goldman Sachs Group Inc.' s connection to the Iceland volcano that spewed ash into the atmosphere and fouled Europe's airways, triggering billions in lost revenue for airlines? The jokes circulating that the Wall Street investment bank somehow managed to plant a small nuclear device in the volcano and detonate it after short-selling airline stocks simply refuse to go away.
The reports come as Goldman denies fraud charges contained in a civil suit filed by the U.S. Securities & Exchange Commission, and just as the Street's biggest firm reported first-quarter earnings that far surpassed analysts' expectations. Such is the firm's reputation, after it emerged from the financial crisis bigger and more powerful than ever, that its ability to manipulate events to its own advantage, to conspire to fatten its profits at the expense of any and all, has become the stuff of legend.
Lloyd Blankfein, Goldman's chief executive, who famously and ironically remarked last year that the firm was simply "doing God's work," was in the audience yesterday when U.S. President Barack Obama took his financial regulation message right into Wall Street.
There was no word what Blankfein thought of the President's speech, but one can only surmise that he wishes Washington and the SEC would go away and let Goldman continue the Lord's bidding.
Obama reiterated his argument that the country was almost dragged into a second Great Depression by "a failure of responsibility -- from Wall Street all the way to Washington" and told the Street to stop "furiously" fighting his regulation efforts.
Goldman is the most high-profile name fighting to keep its vast expanse of verdant Street turf, a symbol of an industry that has virtually been a law unto itself. And it says here that the firm and the Street, with all the ingenious minds that invented the mind-boggling products that almost blew up the country, will find ways to manoeuvre around any regulation.
Goldman, of course, does not need to blow up volcanoes to spew mountains of profits. It is the essence of what makes Wall Street what it is: An outfit that makes money any which way. It does whatever works, mostly within the rough guidelines set out by a toothless and feckless federal watchdogs.
That Wall Street is a paragon of self-interest should come as no surprise to anyone with a pulse. The Street is there to make money for itself, with most clients and the small investor on Main Street mere sources of funds to produce more money for the Street.
If the clients and small fry make money, it's basically a byproduct of the process of squeezing as much out of the system for the investment banks, their principals, employees and, down the line, their shareholders.
Ostensibly, Wall Street once was there to gather capital to finance America's great expansion. But that has been turned on its head, with the capital fuelling the Street's expansion.
Wall Street, of course, does not have a monopoly on self-interest. It is built in to the human condition. People cut corners to favour themselves at all levels of existence, in all walks of life, in all endeavours, from the politician who cynically votes on an issue to enrich himself and his cronies, to the professional athlete who takes steroids.
It's all about motive and opportunity. It's just that Goldman has more motive--mountains of profits -- and more opportunity -- far less competition and far more creative products and schemes -- than just about any other entity.
While Goldman was doing God's work, investors and other interested parties should be looking at Mammon, with an eye on the bottom line, not the heavens.
Goldman is simply the best at what it does, which is making lots of money for itself and its clients.
It will continue to do so, despite the SEC's allegations and the surrounding bad publicity, which will eventually go away as the Street begins pumping up the next bubble and investors start buying in.
Goldman's stock has taken a hit and will remain volatile. But many investors will try to profit from the firm's success, as they already have, by owning the stock. Other observers not willing to do that might profit by looking at Goldman and Wall Street with the same hard-eyed cynicism that the firm and the Street view their business.
Meantime, they should watch out for any volcanic eruptions and other "natural" phenomena, and the short-selling possibilities they may provide.
As the ash from the Iceland volcano began to subside this week, could it be that Goldman Sachs was already long on the airlines for a quick trade?
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So, just what is Goldman Sachs Group Inc.' s connection to the Iceland volcano that spewed ash into the atmosphere and fouled Europe's airways, triggering billions in lost revenue for airlines? The jokes circulating that the Wall Street investment bank somehow managed to plant a small nuclear device in the volcano and detonate it after short-selling airline stocks simply refuse to go away.
The reports come as Goldman denies fraud charges contained in a civil suit filed by the U.S. Securities & Exchange Commission, and just as the Street's biggest firm reported first-quarter earnings that far surpassed analysts' expectations. Such is the firm's reputation, after it emerged from the financial crisis bigger and more powerful than ever, that its ability to manipulate events to its own advantage, to conspire to fatten its profits at the expense of any and all, has become the stuff of legend.
Lloyd Blankfein, Goldman's chief executive, who famously and ironically remarked last year that the firm was simply "doing God's work," was in the audience yesterday when U.S. President Barack Obama took his financial regulation message right into Wall Street.
There was no word what Blankfein thought of the President's speech, but one can only surmise that he wishes Washington and the SEC would go away and let Goldman continue the Lord's bidding.
Obama reiterated his argument that the country was almost dragged into a second Great Depression by "a failure of responsibility -- from Wall Street all the way to Washington" and told the Street to stop "furiously" fighting his regulation efforts.
Goldman is the most high-profile name fighting to keep its vast expanse of verdant Street turf, a symbol of an industry that has virtually been a law unto itself. And it says here that the firm and the Street, with all the ingenious minds that invented the mind-boggling products that almost blew up the country, will find ways to manoeuvre around any regulation.
Goldman, of course, does not need to blow up volcanoes to spew mountains of profits. It is the essence of what makes Wall Street what it is: An outfit that makes money any which way. It does whatever works, mostly within the rough guidelines set out by a toothless and feckless federal watchdogs.
That Wall Street is a paragon of self-interest should come as no surprise to anyone with a pulse. The Street is there to make money for itself, with most clients and the small investor on Main Street mere sources of funds to produce more money for the Street.
If the clients and small fry make money, it's basically a byproduct of the process of squeezing as much out of the system for the investment banks, their principals, employees and, down the line, their shareholders.
Ostensibly, Wall Street once was there to gather capital to finance America's great expansion. But that has been turned on its head, with the capital fuelling the Street's expansion.
Wall Street, of course, does not have a monopoly on self-interest. It is built in to the human condition. People cut corners to favour themselves at all levels of existence, in all walks of life, in all endeavours, from the politician who cynically votes on an issue to enrich himself and his cronies, to the professional athlete who takes steroids.
It's all about motive and opportunity. It's just that Goldman has more motive--mountains of profits -- and more opportunity -- far less competition and far more creative products and schemes -- than just about any other entity.
While Goldman was doing God's work, investors and other interested parties should be looking at Mammon, with an eye on the bottom line, not the heavens.
Goldman is simply the best at what it does, which is making lots of money for itself and its clients.
It will continue to do so, despite the SEC's allegations and the surrounding bad publicity, which will eventually go away as the Street begins pumping up the next bubble and investors start buying in.
Goldman's stock has taken a hit and will remain volatile. But many investors will try to profit from the firm's success, as they already have, by owning the stock. Other observers not willing to do that might profit by looking at Goldman and Wall Street with the same hard-eyed cynicism that the firm and the Street view their business.
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