NYT slams Goldman for credit crisis

NYT slams Goldman for credit crisis

“It is widely and correctly understood that Wall Street, with Goldman as a leader and with regulators in thrall, helped to inflate and profited from a credit bubble that burst and cost tens of millions of Americans their jobs, incomes, savings and home equity,” the New York Times had said in one of its editorial.

Goldman Sachs has bounced back from the financial crisis and so far this year it has earmarked US$16.71 billion as compensation. In June this year, Goldman repaid US$10 billion of capital infusion it got from the US government in 2008.

Meaningful contribution

Terming Goldman Sach’s recent US$ 500 million initiative to help 10,000 small businesses as “crumbs from its table”, the editorial said “if Goldman wants to make a meaningful contribution, it would have to be in the billions and aimed more directly at taxpayers.”

The editorial further hinted that Goldman Sachs can also participate in a multibillion-dollar gift to the federal Bureau of the Public Debt, which accepts tax-deductible donations to reduce the national debt.

“The donation can come from the bonuses; that way, it would not harm shareholders, because they only get their cut after the bonuses are paid. Goldman”s tax savings from the donation could help finance the small-business initiative,” New York Times said.

On November 17, Lloyd Blankfein, Chairman & Chief Executive, Goldman Sachs had said “certainly, our industry is responsible for things. We’re a leader in our industry, and we participated in things that were clearly wrong and we have reasons to regret and apologise for.”

God’s work

This statement came a little more than a week after Blankfein drew fire for saying that the Wall Street giant was “doing God’s work”. Besides, Goldman Sachs was also labelled as a “bloodsucking vampire squid.”

Commenting on his apology, the editorial said “his remarks do not come close to an apology. Even if he had said, ‘we’re sorry,’ it would have been hollow since he never actually said what he was sorry for or to whom he was apologising.”

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