"Pulling an Altria"
Here's a bold prediction: Goldman Sachs won't be around in 5 years.
No, I don't think the government is effectively going to revoke its corporate charter, putting it out of business (basically, what happened to Arthur Andersen in the wake of the Enron debacle).
Nor do I think the government is going to break it up into smaller, less "Octopus-like" constituent parts.
Rather, I think the name "Goldman Sachs" isn't going to be around.
Just like reviled cigarette maker Philip Morris spun off its food division, Kraft, and renamed the remnant "Altria," Goldman Sachs is likely to spin off something -- anything -- to appease the government, then re-name the surviving company.
If only changing your stripes were that easy . . . .
Friday, January 29, 2010
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1 comment:
Remember the flack that the government got with what they did to Lehman Bros.? The government can't pick on just one entity anymore (unless they are trying to intimidate the other big banks). They need to be consistent with all of their actions. I believe that all of the banks are viewed in a bad light with the President. This tax that the President is proposing is just the beginning. If the President wants anything to happen with this, he better get it done before this November.
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