Budgeting for being caught and ensuring your too big to fail (ODT)
The Wall Street giant is also facing the prospect of another settlement with the DOJ which threatens to raid its profits. The staff are no doubt ready, and additional money is already being put aside for regulatory reasons. With supreme insincerity, the bank promises to reflect about this latest chapter in international financial kleptocracy. “There are important lessons to be learned from this situation, and we must be self-critical to ensure that we only improve from the experience.” The sinner, chastened, readies for the next transgression.
Mahatma Gandhi, in one of his more quoted remarks, observed that “the world has enough for everyone’s need, but not everyone’s greed.” The Goldman approach has a different take to his sagacious observation: the greed will always come before the need and there is ample amount to be had. It is a philosophy that has enabled it to escape the calamities of the subprime market collapse in 2009 and survive such catastrophes as the Wall Street crash. While it has received something of a battering, the company has seen worse. Expect much and more of the same: greed sells, and while stumbles are bound to take place, budget for them.