Surprise! Goldman Sachs could be largely unaffected by financial overhaul

[n2doc]

By Nathaniel Popper, Los Angeles Times
August 11, 2010

Reporting from New York —
As Wall Street scrambles to find the best and most profitable way to operate under the new financial reform law, Goldman Sachs Group Inc. — the firm that was expected to suffer the most under the legislation — could emerge practically unscathed.

Right after Congress passed the regulatory overhaul bill last month, analysts estimated that as much as one-tenth of the preeminent investment bank's earnings could vanish because of new restrictions on activities targeted by the regulatory overhaul.

More recently, however, top Goldman executives privately advised analysts that the bank did not expect the reform measure to cost it any revenue.

"The statement was perhaps surprising in its level of conviction," Bank of America Merrill Lynch analyst Guy Moszkowski wrote in a note to clients, "but we've learned to take such judgments from GS very seriously."

more

http://www.latimes.com/business/la-fi-goldman-20100811,0,2225692.story

[Electric Monk]

1. Gold ManSacks can do no wrong

Not when Timmy G has any say in the matter, anyways.

[Demeter]

2. Since Goldman WROTE the Regulations

of course they wouldn't be hurt.

[JohnnyBoots]

5. Governments exist for the good of Corporations.

[Gold Metal Flake]

3. Change-O-Licious!

[Autumn]

4. And that would be a surprise to

who?

[alc]

6. COULD is the key word

one-tenth of the preeminent investment bank's earnings could vanish


The bill allows a lot of regulation but requires very few changes. Requiring existing regulation be enforced would have been better than allowing additional. My guess is that the level of oversight will be about the same as the SEC has done for the last 10 years and MMS has done with BP.

But they can sell the bill on what it could do and people get excited. And the regulators will be blamed, not congress when it fails to achieve results.

[Raster]

7. Quelle Suprise! Who could have imagined?