No one should be surprised that Goldman Sachs has been asked by regulators for information regarding its compensation practices and its derivatives practices. Chances are that all banks have been asked for similar information. Goldman Sachs’ said it is cooperating with regulators, which were not specifically named, in a recent SEC filing, according to the AP.
The issue for Goldman Sachs is whether this investigation explodes into yet another PR fiasco. The company has some obvious image problems right now. One could argue that these are good problems to have, as they are borne of the company’s extreme success, but they are certainly not to be taken lightly. Well see where all this leads, but the firm’s image will have to play a role in its decision-making. I’m not sure it did before.
By Jim Kim at FierceFinance
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