Last week we saw something many did not expect. We saw senior members of Goldman Sachs enrage members of a congressional committee not by arguing or feigning innocence or even ignorance. For the most part they seemed mystified. There is a huge emotional payload connected with their $3 billion profit by betting against investments they were selling. The congressmen were trying to get a rise from the execs, a sense of contrition or remorse. But investment banks function largely for the purpose of making money. They make markets and sell things that someone else creates and like any smart investor, they hedge their bets.
PonderThis: When Rewards are Out of Whack
PonderThis: When Rewards are Out of Whack
PonderThis: When Rewards are Out of Whack
Last week we saw something many did not expect. We saw senior members of Goldman Sachs enrage members of a congressional committee not by arguing or feigning innocence or even ignorance. For the most part they seemed mystified. There is a huge emotional payload connected with their $3 billion profit by betting against investments they were selling. The congressmen were trying to get a rise from the execs, a sense of contrition or remorse. But investment banks function largely for the purpose of making money. They make markets and sell things that someone else creates and like any smart investor, they hedge their bets.