For all of Goldman Sachs' professed support for an overhaul of financial regulations, the megabank hasn't exactly withdrawn its army of lobbyists. Far from wearing out its welcome, the firm is busier than ever safeguarding its interests while a Wall Street crackdown takes shape in Washington.
Goldman has an unrivaled and influential network of lobbyists, including about 50 people with close ties to Congress and past White Houses, a Huffington Post Investigative Fund analysis of lobbying and campaign records shows. The lobbyists are challenging reforms aimed at Goldman's profit centers, including the trading of complex contracts known as derivatives. The Senate this week will continue debating proposed regulations of derivatives, which are blamed for fueling the financial crisis
The fact that banks have been allowed to trade derivates as a means of hedging their bets on investments like risky mortgage backed securities really points out that the combined lack of regulatory control by our government and the lack of transparency in financial reporting creates an environment where our big financial institutions, like Goldman Sachs, can manipulate markets and reap huge profits at the cost of financial stability. We need more regulation now before we find ourselves in another harmful bubble market.