Well that was fast. The shell game has moved on.
In a follow up to questions raised by Simon Johnson as to how Goldman Sachs, as a bank holding company, is able to conduct private equity transactions in non-financial industries, I have learned that Goldman is no longer a bank holding company. Yup, they are now a financial holding company.
Simon Johnson got caught looking under the wrong shell.
Goldman converted to a bank holding company when they recieved TARP money, but they unconverted from that real fast and are now, as of August 14, a financial holding company, according to a conversation I had with Goldman spokesman Lucas Van Praag.
Van Praag tells me that, even as a bank holding company, Goldman had various exemptions from 2 to 5 years to conduct various non-financial transactions. But, now, it is apparently full speed ahead for Goldman to do whatever the hell it wants.
They will, of course, still be under the supervision of the New York Fed, but Van Praag told me, "We are happy with that."
Hmmm, I wonder what makes them happy with that?
Keep in mind that former Goldman chairman Stephen Friedman resigned as Chairman of the New York Fed after trading in Goldman stock while still on the NY Fed board.
What other Goldman friendlies are lurking on the NY Fed board?
They are a team, that's what. Cornix cornici oculum non effodit.
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