By Tim Shoemaker<\/p>\n
Washington Examiner<\/em> columnist Tim Carney articulates clearly just how Goldman Sachs will benefit from the financial “reform” bill currently under consideration in the Senate.<\/p>\n There’s a rule of thumb in Washington: Whenever politicians open up a legislative or regulatory debate, the side with the best lobbyist usually wins. Goldman’s clout is not measured so much in terms of lobbying dollars — though I’m sure the firm pays generous fees to its K Street soldiers, notably Dick Gephardt, John Breaux, and Tony Podesta — but in its direct pipeline to the corridors of power.<\/p>\n<\/blockquote>\n Carney highlights several administration officials with close ties to Goldman combined with the $950,000 Goldman executives donated to Obama for America to show that Goldman Sachs will get the regulation they really embrace.<\/p>\n Politico quoted a Goldman lobbyist Monday saying, “We’re not against regulation. We’re for regulation. We partner with regulators.” At least three times in Goldman’s conference call Tuesday, spokesmen trumpeted the firm’s support for more federal control.<\/p>\n Goldman reported on the conference call that it holds 15 percent “Tier 1 capital,” meaning it is very liquid and not very risky. Goldman can play it safe, you see, without needing a regulation. But regulations prevent smaller competitors from taking the risks needed to compete with Goldman (and every competitor is smaller).<\/p>\n<\/blockquote>\n\n
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