Q&A: Goldman in hot water, but here to stay
Harry Moroz, a policy expert with the Drum Major Institute think tank, spoke with amNewYork about the Goldman Sachs-Senate face off.
What is the case against Goldman Sachs?
The executives at Goldman Sachs essentially are being accused of selling an investment that they themselves would not have invested, that they themselves bet against.
They were being deceitful?
Exactly. Deceitful with the intent of making money.
How do they defend their alleged role in the financial crisis?
One phrase that stuck with me, [former Goldman executive Daniel Sparks] said that they were simply participating in an industry that got loose. … They’re just saying that they got caught up in market like everyone else.
Is Goldman Sachs’ image being further tarnished?
I don’t think they’re going anywhere, that for instance, they’re in danger of having to change their name like Blackwater [private security firm]. But you know the SEC suit is a big deal.
And the financial services market as a whole?
The financial market probably is at its lowest point. I think if a strong financial reform bill is passed, there’s the possibility that the financial services industry in the United States will once again be looked upon as a benefit and not as a liability.
How close are we to such legislation?
The likelihood of getting such a strong bill I think is pretty low. I think people will remain suspicious of the financial services industry in the United States for a long time.