Originally Posted by Artisan Fan
There is lots of Goldman Sachs access and influence in D.C., especially under this regime. However, Goldman is where they are due to liquid and free capital markets. That's really a terrible example but thanks for supporting my argument.
Goldman is where they are because of at least two government bailouts. Perhaps three. Maybe four, depending on how you count them. They would have been wiped out 15 years ago on worthless Mexican paper if the Treasury didn't bail them out. They were ever-so-happy to cooperate with the NY Fed, Treasury, and Alan Greenspan so that they didn't take a bath on Long Term Capital Management. More recently they directly took $10 billion from the Treasury. Then they were allowed to convert to a bank holding company so they could access the Fed's liquidity and funding
(although they never have met the textbook definition of a bank holding company
). Additionally they were incidental beneficiary's of the taxpayer's additional largess to stabilize the markets.