The fact that news of Goldman’s settlement of its federal charges and BP’s quick capping of its gushing oil occurred within hours of each other screams conspiracy within my cynical side. The two most heavily vilified companies seem to be smelling like roses today.
The most blatantly perverse resolution of the day was the $550M settlement by Goldman Sachs. $550M represents about 16% of 1st quarter 2010 profits or 4% of full year 2009 profits. Goldman contributed $500 million to a charity in 2009 instead of jacking up bonuses (they are doing God’s work)….I guess the Government, SEC and their employers – the taxpayers – really are a charity case for Goldman. This settlement is a joke. The most ridiculous aspect is that the trader indicted in the SEC’s charges, Fabrice Tourre, will fry while Goldman goes free. I bet we hardly hear a whisper about him going forward.
On the other side of the pond, BP might see quite a relief after its announcement of full containment of the gushing disaster plaguing the gulf. Today they get to celebrate after a closing jump in the stock of 7.6% or more than $8B in market cap:
I am glad that BP capped the well, but when you hear that they will get tax breaks on the cleanup costs it leaves a sour taste in your mouth.
When our politicians push to decrease corporate taxes to “stimulate employment” and push to increase personal income taxes to “decrease our irresponsible federal deficit”, try to keep these two corporate do-gooders in the back of your mind.