Goldman Sachs Finds Loopholes in Regulations to Maximize Profits
In Is Goldman Sachs Too Big to Fail by Former Chief Economist at International Monetary Fund and co-author of the “13 Bankers” Simon Johnson mentions after consulting with four experts (Erik Berglof, Claudio Borio, Garry Schinasi, and Andrew Sheng) from various international organizations that if Goldman Sachs was hit with a “financial rock” the Government would not allow for Goldman to go bankrupt and would be bailed out again. Big banks such as the prestigious Goldman Sachs is controlling entire industries, deliberately charging consumers for rent payments of which the consumer has no authority over, and ultimately raising the prices of items manufactured with the resources they are withholding.
Recently, Goldman Sachs and other big banks such as Morgan Stanley, and JPMorgan Chase have been pushing their way into the commodity business by buying warehouses, oil refineries, power plants, and other physical infrastructure. According to an article by The Editorial Board from the New York Times, Goldman Sachs’s Aluminum Pile, “They have been able to do so because American lawmakers and regulators have removed many of the barriers that historically separated banking and commerce.” The banks involved and supporters claim they should be allowed to buy sell commodities on a large scale because it is closely related to their trading activities, however, the banks could take an unfair upper hand using their knowledge in the physical market to assist them when trading in the finance market with Exchange Traded Funds.
In addition, Goldman is deliberately charging consumers for rent payments of which the consumer has no authority over. In February of 2010, after the financial crisis, Goldman purchased Metro International and acquired a series of twenty-seven warehouses where they hold and distribute aluminum. The time it took to receive the aluminum from before Goldman’s acquisition of the warehouses...
Please join StudyMode to read the full document