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created at

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Content

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The Fed vs GS BS

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The Fed vs GS BS Over the weekend This American Life aired a fascinating set of tapes made by a Fed examiner working as a regulator at Goldman Sachs. I worked at Goldman Sachs during the financial crisis and thought I’d share a few thoughts on the topic. The main thing that I noticed in the recorded conversations was the dramatic mismatch in drive between the regulators and the bankers. One thing that is immediately obvious at GS is that everyone comes to work prepared to play and win. Moreover, from my experience, everyone at Goldman follows the law. Yes, they may walk right up to the line and kick sand at it, but they operate legally. (There are of course the bad apples, but as a general statement I found this to be true.) The Fed on the other hand was just showing up and “fussing at ’em”. What people fail to recognize is that it is our responsibility to legislate and regulate the banks. To think they they will self-imp...

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