Few writers today capture and explain the business-government dynamic as well as Ira Stoll, who blogs at “The Future of Capitalism.” Today, Stoll spotted this line in Goldman Sachs’ annual letter to shareholders:
Yes, that’s the largest investment bank on Wall Street calling for stricter regulation from Washington. Stoll has a pretty straightforward explanation:
Why should Goldman have to pay for mitigating the risk of its deal-partners when the SEC or the Fed can do Goldman’s work for it — on the taxpayer dime?
This is further evidence of what I’ve been saying for months: just as tobacco regulation was a gift to Philip Morris, toy regulation was a gift to Mattel, and health-care “reform” was a gift to Big Pharma, financial reform will improve Goldman’s profitability, Obama’s populist rhetoric notwithstanding.
