I have been saying that on this board for months. Way to go Obama. Perhaps he is ready to make some effective change.
Goldman only became a bank at the beginning of the financial crisis to get government banking. They don't need banking operations for their business model, so they'll just stop being a bank to get around the regulations.
And if we can get all of wall street off the government back stop concept - we (including wall street) will all be much better off. Too big to fail is too big a problem. I have no problem if wall street makes huge profit as long as they are not socializing the losses.
Yeah but there goes the Interest Free loans they use to make money. Even a Caveman can make money if you can borrow at 0% and trade free money. If you read the Rolling Stone article about Obama you will note that he pretty much pushed Volcker aside and pretty much ignored his advice. I suspect Obama thought he could get away with letting Wall street continue to do business as usual and to add insult to injury let them become banks, get 0% cash loans and make record profits. That was spitting in the face of all Americans everytime GS announces bigger and better profits and bigger and better bonuses while no one is loaning cash for productive activity since it was tied up trading the markets. When Scott Brown won, it woke up congress and Obama to the reality that Lobbyist cash is worthless if it does not guarantee another election. So now Thanks to the Scott Brown win it is forcing Obama/Congress to Break some promises made to lobbyists and now he is forced to take Volcker's advice. That Token banktax was a bullshit and stupid idea, it was just going to let Wallstreet off the hook since they can just pass the tax down to the consumer/industry. Now Obama is going to have to die by the sword or stand up and do what he promised. BTW, GS CDS spreads are up again which means there are concerns if GS no longer has access to unlimited 0% money. And Insiders have been unloading GS stock, They are paying themselves huge bonuses and unloading stock for a reason.
If they do that they just may do themselves in with that move. You cant be a bank one day to collect 45 billion and not a bank the next day. They were afforded certain tax and financial status if they were a bank. They may just find themselves in litigator hell for that move! Jeez why didnt evertybody become a bank last year? They also became a bank to get government financing and tax status and a way to help themselves with their credit default problem with AIG, MAiden lane III might be deposited in their bank!
Their bonuses recently have been in stock, not ANY cash, at the upper levels. They're likely just selling vested shares.