More on Goldman Sachs

Wrangling The Giant Vampire Squid

Posted by James Curcio on August 16, 2011

Matt Taibbi has been waiting to watch Goldman Sachs executives go to jail for a while–at least since 2009 when he called Goldman the “great vampire squid wrapped around the face of humanity relentlessly jamming its blood funnel into anything that smells like money.”

Released today, the latest installment of Taibbi’s manifesto against all things Goldman sets up a pretty simple proposition based on the recently released 650-page report from Senator Carl Levin’s Subcommittee on Investigations, detailing the collapse of the American financial system. Taibbi wastes no time with whodunnit paragraphs, instead setting the smoking gun on the doorstep of the Department of Justice. Like a rewriting of the Senate investigator’s above quote, Taibbi declares, “Everything’s fucked up, and it’s time for Goldman Sachs to go to jail. You don’t even have to investigate because the Senate did it for you. Just issue those subpoenas.” (The Atlantic Wire)

Apparently the vampire squid also has an appetite for metal. Goldman Sachs is making an estimated $165 million per year though Detroit warehouses jam-packed with more than a million tons of industrial metal aluminum or about a “quarter of global reported inventories,” reports Reuters. The news service’s fascinating investigation finds that by simply storing the metals in its warehouses, the investment bank reaps tens of millions of dollars in rental revenues every year. The warehousing business takes advantage of a regulation imposed by the London Metal Exchange that  allows warehouses to release “only a tiny fraction of their inventories per day, much less than the metal that is regularly taken in for storage.” (The Atlantic Wire)