Reading this Dana Milbank article about Goldman CEO Lloyd Blankfein’s congressional flogging, it struck me that I’ve lost touch with America’s populist rage. I support financial re-regulation, but I’ve stopped expecting monthly demonstrations of contrition from the banks’ CEOs. I just don’t care anymore. Jamie Dimon can send me a fruit basket or a lump of coals, and my opinions about Wall Street, and what we should do to reform it, won’t budge.
Milbank’s complaints have nothing to do with the events of the past or
the policy of the future. They have to do with Blankfein’s attitude.
The Goldman chief “made it plain that he was
done apologizing” … “smirked as they spoke, challenged the premises
of their questions,
offered frequent lectures of ‘let me be clear,’ and often responded to
questions by asking questions of his own. [Blankfein] seems to exempt himself from the rules of man.” Most of this is
utterly besides the point, and that last part doesn’t even make any
sense.
Blankfein’s prickliness in yesterday’s testimony was often justified. For example, Angelides and
Milbank seem flabbergasted
that Goldman would sell mortgage securities
and also place bets against them. But that’s exactly what a market
maker does.
Angelides’ comparison — “selling a car with faulty brakes and then
buying an insurance policy” — is off. It’s like screaming at a bookie
for holding bets on the Colts in this
weekend’s game after taking your bet against the Colts. That’s what
bookies do. Congress summoned Goldman’s chief to compare its core
business to insurance fraud and he dared utter the phrase “let me be
clear.”
What the heck does it matter what Wall Street CEOs act like? We don’t need to line up Fannie and Freddie
and subprime home owners and the ratings agencies and all the little financial sinners and wrap their
knuckles until Yom Kippur comes around. This is Congress, not
Confessional. Just pass financial regulation. Not doing so is the only thing that would require a national apology.
