valuewalk | “When regulators care more about protecting big banks from
accountability than they do about protecting the American people from
risky and illegal behavior on Wall Street, it threatens our whole
economy,” Warren said in a statement calling
for action. “We learned this the hard way in 2008. Congress must hold
oversight hearings on the disturbing issues raised by today’s
whistleblower report when it returns in November – because it’s our job
to make sure our financial regulators are doing their jobs.”
Its important to note that with nearly $700 trillion in worldwide derivatives exposure,
the big banks could wipe out the world economy several times over if
these derivatives contracts were to implode simultaneously. The New
York Federal Reserve is significantly responsible for this key
regulatory responsibility which might require a tough stance with the
banks in order to protect the economy, say observers.
Doyle wonders where Goldman Sachs Group Inc (NYSE:GS)
CEO Lloyd Blankfien stands on the issue? As previously reported in
ValueWalk, in an interview, Michael Bloomberg and Blankfein engaged in
talk of ethics at the bank and in society. “You have a career because
you have an ethic behind it,” Blankfien said in that interview less than two weeks ago.
“What does Lloyd Blankfien have to say regarding the fact that his
colleagues have been fully and outrageously exposed as playing by a
separate set of rules written and practiced by the Wall Street elite?”
Doyle questioned.
It’s unclear at this point if the real issues on several levels will be addressed.
A bright note, however, comes from listening to the tape. When the
senior supervisor in charge of supervising Goldman Sachs Group Inc (NYSE:GS) discusses confronting the bank when they violate regulations,
the Fed staff gets excited, proving there are regulators who really
want to regulate. The problem is higher level authorities are getting in
their way.
