I got an idea. Going forward, every MBA program and every Investment Bank orientation for new hires should have a mandatory course called " money-making schemes without a conscience". In reality , that's what a large part of the the Wall Street " monopoly money" culture has become . It all started with 3 key ingredients; Greed(greed, and greed) , legal loopholes and the lack of any conscience on Wall Street.
The fine arts of betting against your client's position, selling toxic, mortgaged-back securities, buying and dismantling companies, going public or private and overleveraging the new entity to pay for upper managements' sale of stock, taking multi-billion dollar risks in the derivative markets and of course turning money losing businesses into profit centers would be the subjects taught at the masters level. Grasping these concepts would guarantee to put you on the fast-track in today's Wall Street.
Yes, turning money losing electric companies into profit centers is exactly what Masters and Goldman Sachs did. It will cost them a cool $ 500 million in fines and/or penalties.Wowee.
A deterrent to Wall Street? Of course not. More like an incentive...Yes, an incentive to dream up another scheme to earn back that $500 million as soon as possible. And the beat goes on.....
Steve "Getko " Goldman reporting.
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