How did Goldman Sachs make all that money?
There is a good commentary
by Numerian over at the Agonist (h/t Ian Welsh
Bottom line: Sachs made the money by acting like a hedge fund. Not as a commercial bank or even as an investment bank
, despite the fact that it's got the borrowing privileges and federal backing that applies to commercial banks. Goldman Sachs has the legal status of a commercial bank but was speculating* like a hedge fund.
* - "speculation" may not be the right word since this year Goldman Sachs had some unique advantages due to its size and the fact that other competitors had vanished.
If Goldman Sachs had been a Republican connected firm, this would all be called political corruption.
It still is, only no one wants to call it that because they are Obama administration insiders.
Anon: It's both. Goldman got most of its money and the waiver in 2008, but Obama isn't helping change the situation at all.
How did Goldman make all that money? Why they did it the old fashioned way:
THEY STOLE IT!