Are you tired of reading about Goldman Sachs? I sure am. Yet the most corrupt criminal organizatin in American history has created a neverending story. In the latest Mother Jones, a former Goldman Sachs insider explains how you (yes, you) are making really rich people even richer. Check it out:
Bank holding companies (which all the biggest financial firms now are) come under the regulatory purview of the Fed, the Office of the Comptroller of the Currency, and the FDIC. The capital they keep in reserve in case of emergency (like, say, toxic assets hemorrhaging on their books, or credit derivatives trades not being paid) is supposed to be greater than investment banks'. That's the trade-off. You get access to federal assistance, you pony up more capital, and you take less risk.
Goldman didn't like the last part. It makes most of its money speculating, or trading. So it asked the Fed to be exempt from what's called the Market Risk Rules that bank holding companies adhere to when computing their risk.
Keep in mind that by virtue of becoming a bank holding company, Goldman received a total of $63.6 billion in federal subsidies (that we know about—probably more if the Fed were ever forced to disclose its $7.6 trillion of borrower details).... Then, there's the $29.7 billion it's used so far out of the $35 billion it has available, backed by the FDIC's Temporary Liquidity Guarantee Program, and finally, there's the $11 billion available under the Fed's Commercial Paper Funding Facility.
Tactically, after bagging this bounty, Goldman asked the Fed, its new regulator, if it could use its old risk model to determine capital reserves....
On February 5, 2009, the Fed granted Goldman's request.... Yes, Goldman is a more risk-prone firm now than it was before it got to play with our money.
After reading the article, consider how much longer you want the Obama Administration to play you for a chump - like the Bush Administration did before Obama, and like the Clinton Administration did before Bush.
Are you Obamaheads - who vapidly chanted "Hope!" and "Change!" - going to hold your man to his promises? Or did the Krishna-like-meditative-chants squeeze out the room needed for real thoughts?