Coos Bay Tom wrote:
https://www.goldmansachs.com/intelligence/topics/economic-outlooks.html?chl=ps&plt=go&cid=20314087364&agp=156316992408&kid=economic%20outlook&mtype=p&gclid=Cj0KCQiA2KitBhCIARIsAPPMEhIA_937Rnem2S-4oBx-LMIk7dNp2VOdn_IXq0p4Me6Jn1172Q-oG3saArE7EALw_wcB&gclsrc=aw.ds
Here is some useful information about Goldman Sachs.
Goldman Sachs agreed to pay $550 million in July 2010 to settle charges by the Securities and Exchange Commission (SEC) related to the bank's marketing of a subprime mortgage product. While $550 million was a record fine at the time for a financial institution in an SEC case, the impact of the settlement on Goldman Sachs' overall financial health was relatively modest considering the size and earnings power of the firm.
To provide some context:
1. Goldman Sachs is one of the largest investment banks in the world, with multiple streams of income across various sectors including investment banking, asset management, and trading.
2. During the period leading up to the settlement, Goldman Sachs was generating multi-billion dollar profits annually. For example, in 2009, the year before the settlement, the firm reported a profit of over $13 billion.
3. The $550 million penalty, while significant, represented only a fraction of the firm's annual earnings and did not dramatically impact its balance sheet or its ability to operate.
4. The cost was most likely anticipated and provisioned for; large financial firms typically set aside legal reserves for potential settlements and litigations.
5. The stock market reaction to the news of the settlement was generally positive, as investors had feared that the penalty could have been higher. Consequently, Goldman Sachs' share price rose on the day the settlement was announced, reflecting relief that the uncertainty surrounding the litigation was over.
6. The fine had non-financial implications as well, including reputational damage and increased regulatory scrutiny, which can influence long-term business prospects.
In summary, while a $550 million penalty is a substantial amount of money, for a firm of Goldman Sachs' size and profitability, it did not constitute a financial crisis and was absorbable within the framework of their regular business operations. The firm continued to be profitable and maintain its position as one of the leading investment banks in the years following the settlement.
In other words hardly any tangible impact at all.
If you and I had did what they did we would be in jail.
They are not to be trusted.