Matt Taibbi continues to bring the heat to Goldman Sachs, this time over the absurd notion that transparency in the market is actually bad for people.
Goldman produced the following argument in a lobbying document:
"For some market participants, however, the openness and transparency of the equity market actually mean they are unlikely to achieve the best price."
Counters Taibbi:
The bank argues that an over-the-counter market in which big traders like Goldman get to do deals in the shadows in “dark pools” without the retail investor having any knowledge of what the hell is going on is somehow better for everybody, that this somehow produces better prices. Of course the reality is that the two-tiered system creates one pool of fools whose every movement is visible to every animal on the Serengeti, and another pool of giant bloodthirsty carnivores who get to walk around invisible, picking off the dik-diks one by one.
Everyone I showed this to had the same reaction — “I can’t believe they said this out loud.”
I suppose you have to give the bank credit for being open about their intentions - to deceive investors and manipulate stock prices. The arrogance and shamelessness is still breath taking though.
