No Scandal From Goldman Emails

Emails showing Goldman Sachs CEO Lloyd Blankfein bragging about the bank’s profits from subprime-mortgage short bets have already fueled the flames of popular resentment against the investment bank, but should they have? Several bloggers take up Goldman’s defense: Kevin Drum says he’s “as willing as the next guy to rubbish Goldman Sachs” but goes on to defend the bank, saying “As far as I can tell, this has been Goldman's story all along. They were long housing up through 2006, got nervous, and then started to short the market. As a result, they came out of the financial meltdown in decent shape.” Meanwhile, Felix Salmon proclaims “There is no scandal whatsoever associated with Goldman Sachs emails released by Senator [Carl] Levin today. They show Goldman people going about their line of work, doing what Goldman people do, taking long positions, taking short positions, sometimes even taking big short positions. This is what broker-dealers should do if they have decent risk management.”