rule of law: applies only to you filthy and unprofitable little peasants...,

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.