Earlier we mentioned how Dick Bove had downgraded Goldman to sell, in part based on Matt Taibbi’s new takedown of the firm.
Bove also came out with a note yesterday that contains a history lesson for the firm:
In 1932, Andrew Mellon was believed to be the richest man in the United States and he had just served 12 years as Treasury Secretary, a post he was relieved of by President Hoover.
When President Roosevelt took command he needed to personalise his belief that Republicans and capitalists had caused the Depression and that they needed to be punished. He, therefore, decided to sue Mr. Mellon for tax evasion even though neither the Treasury nor the Justice Departments believed Mr. Mellon had done anything wrong.
The President continued his suit for about six years. By the end of that time Mr. Mellon had died and given the United States the National Gallery of Art. The Supreme Court found in Mr. Mellon’s favour but it did not matter. The President had found his foil and had achieved his goal.
Goldman is the government’s new foil.