This is one weird situation. It should be pointed out that Goldman now has alums in nearly every nook and cranny of high level banking. So don’t expect this rent seeking behavior to be curtailed anytime soon.
Again, Goldman Sachs should be a thing of the past. It should be no more. The “bank” should have died in 2008 when its super leveraged bets went horribly wrong. But former CEO of Goldman Sachs and then Secretary of the Treasury Hank Paulson felt that the taxpayers of the United States should instead recapitalize his buddies.
He and president Bush decided to “abandon free market principals to save the free market system.”
This is the sort of abuse one gets when one abandons the principals of free enterprise. It’s not capitalism.
(From The Business Insider)
According to Kocieniewski, a Goldman Sachs-owned company has been involved in an elaborate plan to move around aluminum in a way that has inflated market prices. The report states that every time an American consumer buys a product containing aluminum, they pay a price that has been affected by this maneuver. Sources told The New York Times that in total the plan has cost American consumers more than $5 billion over the last three years.