In a disclosure destined to focus more unwanted attention on Wall Street, Goldman Sachs reported Monday that its traders made money on all 63 trading days of the first quarter of 2010—the first perfect quarter in Goldman's history. But with the Wall Street giant already facing government action for allegedly defrauding investors, the news threatens to "exacerbate criticism that Goldman has an unfair advantage in the markets." A Goldman spokesman says the stellar quarter simply proves the firm is good at assessing risks. Is Goldman playing fair?
Clearly, Goldman's cheating: Sure, Goldman has "plenty of exceptionally talented people," says Larry Doyle in Daily Markets, but it's galling for the firm to attribute its astounding success primarily to trading skill. In fact, Wall Street has become an oligopoly in which Goldman and other giant institutions "control, if not outright manipulate, prices." It's even worse than Vegas, where the house is humble enough to take an occassional loss.
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