Two Billion More Reasons To Hate Goldman Sachs

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BREAKING NEWS! Goldman Sachs (GS) is going to report a big profit tomorrow. And it’s employees are much better paid than you are. And they also received a bailout last year.

NYT: Analysts predict the bank earned a profit of more than $2 billion in the March-June period, because of its trading prowess across world markets. If they are right, the bank’s rivals will once again be left to wonder exactly how Goldman, long the envy of Wall Street, could have rebounded so drastically only months after the nation’s financial industry was shaken to its foundations.

It just must be some kind of nerfarious conspiracy!

“They exist, and others don’t, and taxpayers made it possible,” said one industry consultant, who, like many people interviewed for this article, declined to be named for fear of jeopardizing business relationships.

Making things even more supsicious is that Goldman is clamming up:

Goldman declined to comment over the weekend, pending its Tuesday earnings report.

Oh wait, maybe that’s because no company in the history of earnings reports would comment to a newspaper two days before they were set to release numbers. Still, very, very suspicious stuff going on.

Barry Ritholtz is excited to read some eloquent Goldman Bashing in the pages of the venerable New York Times and says it represents the new zeitgeist. By “eloquent” he means this part:

On Wall Street, where money is the ultimate measure, Goldman is both revered and reviled. Its bankers and traders are sometimes referred to as the Bandits of Broad Street. An executive at a rival bank characterised Goldman traders as “orcs,” the warlike creatures of Middle Earth in Tolkien’s “The Lord of the Rings.”

Even mainstream America is taking notice. An article about Goldman in a recent issue of Rolling Stone, by Matt Taibbi, characterised Goldman as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” Goldman dismissed the article as the ramblings of conspiracy theorists.

Yes, maybe describing a bank as a vampire squid or an orc is the new eloquent zeitgeist or whatever. Or maybe it’s just the Old Grey Lady trying to keep up with the hipper blogs that have made an art of Goldman Bashing and conspiracy mongering. (See Ritholtz’s own: “Is Goldman Stealing $100 Million per Trading Day?“)

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