Fraud Fine Is Chump Change for Goldman
$500M penalty amounts to just 2 weeks of profits
By Kevin Spak, Newser User
Posted Jul 16, 2010 1:56 PM CDT
Goldman Sachs CEO Lloyd Blankfein testifies before the Senate Subcommittee on Investigations hearing on Wall Street investment banks and the financial crisis on Capitol Hill, April 27, 2010.   (AP Photo/Susan Walsh)

(Newser) – The SEC is boasting that the $550 million settlement it agreed to with Goldman Sachs is the "largest-ever penalty paid by a Wall Street firm." That may be true, but that doesn't mean it's actually going to chasten Goldman. Top put things in perspective, Pro Publica notes that the fine is...

  • ... less than Goldman gave away to small businesses as a PR move in November.
  • ... less than one-tenth of the value Goldman stock gained yesterday on news of a settlement.

  • ... about 2 weeks' worth of profit for the company, based on the first quarter of 2010.
  • ... a sum Goldman could pay immediately, hundreds of times over, given its $162 billion in excess liquidity.
But, to be fair, it's also...

  • ... eight times what Lloyd Blankfein makes in a year, and ...
  • ... significantly more than Goldman made on the deal the SEC sued over, though the firm had dozens of similar deals not included in the lawsuit.

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Showing 3 of 14 comments
bewilderbeast
Jul 17, 2010 5:36 AM CDT
Until we have jailtime for real thieves we will not see the end of this banking-thieving. As he chuckles into his dom perignon, Blankfein is already plotting his next shit-for-cash mega-deal to raid the fiscus. He and his mafia won't rest until the entire country's wealth is in their hands.
tomodachi
Jul 16, 2010 5:58 PM CDT
Speaking of chumps... the American tax payers. The Fed is giving money to the banks at zero percent interest... and the banks are buying US bonds by the billions... and making 3+ percent on every transaction. That's why they're making profits out the hind end... profits at the US taxpayer's expense. Why would they bother to loan money to a business and risk failure... when they have a sure bet with the the American taxpaying chumps?
YourBabysitter
Jul 16, 2010 5:41 PM CDT
The same traitors who created the biggest fraud in history still have their washington jobs and also decided the amount of this very small fine...... is this news? The Washington vehicle is still very broken and only has a new driver. Business as usual as we die a slow financial death.