If GS Is A Commercial Bank, Why Do They Still Play By Investment Banking Rules (Grayson Congressiona

07/30/2009 • The Daily Bail

It's becoming more than occasionally appalling to watch the games played by Goldman Sachs as they run roughshod over Washington. First some background. Goldman applied and was quickly granted official status as a bank holding company during the crisis last September, with the result being immediate and unlimited access to the Federal Reserve's discount window. Ahhh, easy overnight cash, but at a stiff price you naturally assumed. Not so fast, this is Government Sachs we are discussing. Conversion to a bank holding company would normally require higher regulatory capital requirements, reduced leverage and less risk overall. But again, not if you're Goldman Sachs. In January, Blankfein requested an exemption from these pesky new requirements, and true to its capture, the Fed naturally granted the exemption, explained in this letter to Government Sachs dated February 5th.

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