Will anger at Goldman Sachs change the way financial firms & markets operate?
This isn’t the first walk of shame that prominent CEO’s have made in front of Congressional committees—it wasn’t that long ago that executives from the auto industry, insurance companies and energy firms were all dragged in front of Congress for a righteous grilling. The latest two days of testimony given by the chief executive of Goldman Sachs and his various underlings makes for good drama—and the fraud case brought by the SEC against Goldman could result in billions of dollars in fines—but nobody will go to jail and business could likely to carry on as usual. Even as a debate rages in Congress over how much more power to grant the Federal Reserve and other regulators to monitor and potentially break up troubled financial giants, critics claim that the financial regulation overhaul legislation doesn’t go nearly far enough to prevent the next market meltdown. Two weeks ago, Alan Greenspan appeared in front of Congress and questioned the entire “modern risk-management paradigm.” Will anyone listen?