Yesterday, was day one of the Financial Crisis Inquiry Commission’s probe into what caused the near collapse of the financial system in the fall of 2008, Goldman Sach’s Chairman, Lloyd Blankfein, stated the following in the hearing:
I do think the behavior is improper. We regret the consequence that people have lost money in it, but he said his company had no legal obligation to disclose that its executives were shorting the securities they were selling, adding that the firm’s clients were “professional investors” with an appetite for risk. “I felt good about it.
If you only do what the law dictates, then he’s saying he can’t tell right from wrong, without his mother/father telling him so. There’s no way the government can nor do we want them to create a law for every permissible action or inaction. A simple fiduciary responsibility exists when you advise clients, and Mr. Blankfein doesn’t understand that.