While regulators seems to overlook some of their "cousins" like JP MorganChase (NYSE:JPM), Goldman Sachs seems to be the favorite target and distraction of those assigned to act like watchdogs and oversight sleuths.
Today's annoucement that the Financial Crisis Inquiry Commission, a U.S. panel investigating the causes of the financial crises, may bring in outside accountants to scrutinize Goldman Sach's (NYSE:GS) systems for data on its derivatives business is the latest focus.
The panel's chairman told the Financial Times of London that they won't give up until they get some answers. What their actual agenda and who they are really answering to is anyone's guess. The commission will not back down from demands for information Goldman's executives have maintained they do not track, Chairman Phil Angelides told the newspaper. This is the same democrat who ran for the governorship of California and was crushed by "The Arnold".
"We have a deep level of questioning about whether we are getting the straight scoop here and whether Goldman is working with us on information that they surely have," Angelides told the paper.
That might be the understatement of this era of financial chicanery. We have to hand it to old GS, they seem to pass every "stress test" that is thrown their way. Goldman's executives had earlier told the panel that the bank's accounting systems did not break out trading revenue generated strictly from derivatives. When we understand the outstanding liability of the derivatives market, that assertion is hard to accept.
"It defies logic that these institutions have no clue of how much money they are making or losing from these derivatives," Angelides told the paper.
Yes, that would be like BP saying that they don't have a ballpark figure as to how much money their disasterous oil spill has cost them and their shareholders.
"Defying logic" seems to be the theme of the "new normal" in the banking and financial world. Investors need to at least be wary, and should watch this ongoing investigaton of Goldman's money-making practices. Disclaimer: Nothing in this commentary should be construed as investment advice or guidance or any recommendation to buy or sell any financial instrument. It is not intended as investment advice or guidance, nor is it offered as such. It is solely the opinion of the writer, who is NOT an investment counselor/professional. All content of this commentary is solely an expression of his personal interests and is posted as free-of-charge commentary and is subject to error and change without notice. Please do your own due diligence before investing in ANYTHING. The presence of a link to a website does not indicate approval or endorsement of that website or any services, products or opinions that may be offered by them.
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information in such a perfect way of writing? I have a presentation next week,
and I am on the look for such information