too big to fail – RI Future

One of the Wall Street’s infamous “too big to fail” investment banks, whose reckless investments and profiteering would have destroyed the American economy but for a public sector bailout, is coming to Rhode Island tomorrow to offer business advice.

Goldman Sachs will be welcomed by Governor Gina Raimondo, Senator Jack Reed and Providence Mayor Jorge Elorza (11am at NBX Bicycle in Providence) where they will announce the big banks’ 10,000 Small Businesses program is coming to Rhode Island – the first time it has been used “in an entire state,” according to Providence Business News.

The 10,000 Small Businesses program offers business training and loans to small businesses.

“This is a great program with real results across the country,” said Raimondo spokeswoman Marie Aberger. “It is a huge opportunity to bring a significant investment to Rhode Island’s small businesses and entrepreneurs to help them create jobs. To date, Goldman Sachs 10,000 Small Businesses has reached 30 sites across the U.S. and UK, helping entrepreneurs break down barriers to growth.”

But Goldman is not best known for its altruism.

In January, Goldman agreed to pay $5 billion for its role in the financial crisis of 2008. It didn’t simply make risky investments in risky mortgage loans. It made billions of dollars betting against the same subprime mortgages that were bundled together and sold to clients as a sound investment, then hid their massive profits offshore to avoid paying taxes.

A year after getting caught, Goldman launched its 10,000 Small Businesses program, which some surmised is a public relations attempt to whitewash the investment banks’ poor public perception. “In late 2009, just as Goldman Sachs was being widely slammed for showering billions in bonuses on its employees after receiving a massive federal bailout during the financial crisis, the investment bank announced — coincidentally or not — that it was committing $500 million over five years to help small businesses in distressed urban and rural communities across America,” according to Fortune in 2011.

Give Goldman credit for knowing which which way the economic headwinds are blowing in the American economy. A spokeswoman told the Fortune reporter, “…we are obviously focused on economic growth. And small businesses are one of the smartest investments to drive growth in communities in the U.S.”

Rhode Island businesses should take any free money or advice Goldman Sachs is offering. But I would advise them to read the fine print extremely carefully. And to remember the immortal words of Mark Twain, who once said, “I learned something from everyone I’ve ever met, most of the time it’s what not to do.”

Do you really believe we are all equal before the law? Do you really believe that “justice is blind”? Do you really believe we are all entitled to life, liberty, and pursuit of happiness? Do you really believe we have a “democracy” here in the United States? If you answered yes to all, you must certainly also believe in the Easter Bunny.

The giant banks last week pled guilty to innumerable crimes that ruined the lives of millions of people in this country and around the world, but because they are “too big to fail” they have become “too big to prosecute” in court, and therefore no one individual or groups of individuals will be held accountable for their horrific crimes against society. Their crimes are far to numerous to list here, but they did things like money laundering to drug cartels, did business with countries who are labeled “enemies” of the US, massive fraud, cornered commodities like gold and controlled the prices, sold investors stocks and bonds that they knew were failing, then bought into companies and investments that were betting on those failures. The crimes and those who committed them were immoral, reprehensible, had worldwide ramifications, and ruined lives, but not one person will be held accountable.

Instead, our “Injustice” Department chose to hold a press conference and make the announcement that the large banks who have pled guilty to innumerable serious crimes will be “fined.” The “Injustice” Department makes it appear as if the banks are being hammered by its power and might, but in reality they have given the large banks the mildest slap on the wrist possible.

The fines might seem large to the public, but these banks are so large the fines are inconsequential, and will be paid by bank customers in raised rates and fees. In addition, most of the fines levied by the Department of Injustice can be written off as tax losses in a tax code cleverly written to be gracious to the banks and the wealthy. So the fines are, in effect, meaningless. Meanwhile in Iceland big bank leaders who committed similar crimes have been imprisoned.

While large bank executives can commit the most serious of crimes and skate, we have 360 California inmates serving life sentences for “shoplifting.” And you think we have a democracy where we are all equal before the law? Here comes Santa Claus!!

Tag: too big to fail

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