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Will Goldman Sachs’ Apology Lead to Forgiveness?

After being criticized for plans to pay out billions of dollars in bonuses this year, Goldman Sachs has offered an apology for the mistakes it made that led to the financial crisis.

The bank also announced Tuesday that it will spend $500 million to help thousands of small businesses dig their way out of the recession.

“We participated in things that were clearly wrong and have reason to regret,” Goldman’s chairman and chief executive, Lloyd C. Blankfein said. “We apologize.”

Elizabeth Warren, who heads up the congressional panel overseeing how the bailout money is being spent, has been vocal in her criticism of big bonuses, especially in a time of high unemployment.

Warren, in an interview with NOW last week, said companies such as Goldman take “taxpayer money and then, while people are unemployed, lard [themselves] with pay.”

Even though Goldman has paid back the $10 billion in government bailout funds it was given last October, Warren says its time for new rules on executive compensation.

“They paid back the TARP money, but they're still operating with government guarantees. They still are counting on the taxpayer to back stop them. It's our money,” Warren said.

Comments (6)

I was deply disturbed at this ugly mess. Greed is pervasive, and where ire the checks and balances? Greed is just rampant.

Every time I see or read about the bailouts of the "too big to fail" banks and see that their top officials are still getting millions of dollars in bonuses, I get so discouraged. Their lifestyle hasn't changed a bit since the disaster they caused, yet unemployment is at the highest since the Great Depression.

Where's the regulation we were promised by candidate Obama? Our population is turning more and more into a society of the very rich and the poor. Where's the middle class help the Democrats promised us?

Guess I should become cynical about government like everyone else.

Thank you again, Professor Warren. Last week's interview was the best yet. I want the same changes as you do, but Congress is itself a market system and President Obama chose the wrong economic advisors. I share your anxiety and respect your ability to see what needs to be done. Thank you for speaking clearly on this issue.

Warren said it all when she said: Credit Cards: Tricks and Traps.
Thanks for the informative interview.

I deeply regret supporting the bailouts as we have been taken. I supported the bailouts to "save the economy" with the understanding that new regulations would come out of the turmoil.

I now see that the "rich" have taken us for a ride and are using the bailout money to buy lobbyists to stop any meaningful regulations!!!!!!!

Without the bailout, Goldman Sachs would not be paying any bonuses this year because THEY WOULD BE OUT OF BUSINESS!!! And our country would be better for it!!!!

The greed must end!

As we all know words of an appolgy do not have very much merit when they still are using bonus to pay for bad past behaviors. The time for real reform is getting later each year that passes. We are still at the mercy of too big to fail it is time for the justice department to step in and break up new "popsound" (old mabell had no competition now she's gone may Goldman Sachs with their private software that fixes the market to their advantage also go the way of mabell.

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