Goldman Sachs exerts a huge amount of influence over what and how much gets traded on the New York Stock Exchange. Some days their share of the trading reaches 50%—though until recently automated program trading that broke a $1M barrier was disclosed in a pubic report issued by the NYSE on Thursday afternoons.
Well no more. Now it seems that the NYSE is going to become even more a Goldman Sachs’ puppet after new rules were issued that do away with the transparency requirement. Now the large investment banks, especially Goldman, will have the unfettered ability to manipulate the market with no public accountability.
I suppose we could expect Obama’s Treasury Department, with all of its yammering about new, more restrictive rules on investment banking, to step in and restore those rules. But with a never ending succession of ex-Goldman bankers occupying key positions in both the current and former administrations—bankers whose sole purpose seems to be to keep the money flowing into their former employer—I wouldn’t count on it.