|
|
|
|
|
|
by condor
6062 days ago
|
|
|
Goldman's business was subsidized by the Government, in the form of funding Goldman's transaction partners, so that they could pay Goldman what was owed. In normal business if my customer goes bankrupt, even if I made the sale and was owed money, I would take a loss on that transaction., and if the loss was large enough it would affect all of my employees, who in turn took the risk of working for me. I took the risk of selling to that customer, I was in the best position to judge their stability, and so would have to deal with the consequences. Goldman didn't have to deal with the consequences of transacting with unstable partners, the Government (in the form of the taxpayers) stepped in to deal with those consequences, and that is why in large part Goldman is able to exist, earn a profit, and pay bonuses. |
|
|
That is as true for them as it is for RBS! My point is that the government isn't doing a very good job of running a bank...