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Reconciliation

Today I looked at four possible goals for financial-regulation reform, doubted the existence of a middle way on obesity and considered whether Goldman Sachs has become the Anthem Blue Cross of FinReg.

Here's what I didn't get to:

1) Goldman Sachs fires back at the SEC.

2) Heterosexual relationships everywhere weaken as Barack Obama extends hospital visitation rights to same-sex partners.

3) The Economist looks at inequality.

4) Clearinghouses vs. exchanges explained with a graph and a chart.

5) How immigration could splinter the right.

Recipe of the weekend: Thai-inspired asparagus salad with fried lemon.

I was going to wish you a good weekend, but Mitch McConnell said that would be a wish for permanent bailouts.

By Ezra Klein  |  April 16, 2010; 6:15 PM ET
 
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Comments

Heterosexuals will just have to wear even more Axe!

Posted by: bdballard | April 16, 2010 6:41 PM | Report abuse

• Goldman Sachs Lost Money On The Transaction.

So? That doesn't mean Goldman Sachs was honest about the role of Paulson & Co. in the transaction. There are many reasons why Goldman Sachs may have breached its duty to disclose and still lost money.

• Goldman Sachs Never Represented to ACA That Paulson Was Going To Be A Long Investor. The SEC’s complaint accuses the firm of fraud because it didn’t disclose to one party of the transaction who was on the other side of that transaction. As normal business practice, market makers do not disclose the identities of a buyer to a seller and vice versa. Goldman Sachs never represented to ACA that Paulson was going to be a long investor.

Here's the crux of the case. But the SEC doesn't just accuse Goldman Sachs of failing to disclose the other side of the business transaction, it accuses Goldman Sachs of allowing Paulson to deliberately choose the riskiest investments, and failing to disclose Paulson's role in doing so, instead representing that an objective and uninterested party selected the investments.

Posted by: tim37 | April 16, 2010 7:00 PM | Report abuse

bdballard: No no, god no! My sinuses will thank you not to encourage that.

Ezra: as well it would be a wish for permanent bailouts. Can't keep wishing us a good weekend and running the risk of us actually trying to have a good, and thus irresponsible, weekend the burden of which will undoubtedly end up on the backs of future generations. Commie. (*cough* you have a good weekend too *cough*)

Posted by: SashaAriane | April 16, 2010 7:34 PM | Report abuse

Where are your asparagus and Meyer lemons flown in from, Klein?

Will lemon grass and shallots become the new civil right to which every American is entitled under the coming U.S. food control/obesity policy?

Or is all your talk about the unfair advantages that accrue to "the rich" just so much carefully calculated flatulence?

Posted by: msoja | April 16, 2010 7:51 PM | Report abuse

is it wrong to ask if any member of the SEC involved in the investigation or anyone in the administration sold stock in GS prior to the announcement of the investigation?

of course not!

Posted by: visionbrkr | April 17, 2010 8:27 AM | Report abuse

Is it true that John Paulson is a major donor to Harry Reid, Chris Dodd and the Democratic Senate Campaign Committee?

Why do I doubt that real Finance Regulation reform is possible!

Posted by: mwhoke | April 17, 2010 10:49 AM | Report abuse

Thanks, Ezra, for the link to food52. I'm having that salad for lunch today!

Posted by: amandahesser | April 17, 2010 1:46 PM | Report abuse

Ezra,

What did Dodd and Reid do for John Paulson in-exchange for the major campaign contributions?
I am fearful that they allowed him to have his say on financial regulatory reform!

Posted by: JoeJankovic | April 18, 2010 6:19 PM | Report abuse

It is odd to see how msoja always speaks of Ezra Klein in tones of such contempt, and yet he or she is also such a devoted fan of the blog that she or he even clicks through to a salad recipe in order to find out which variety of lemon to use.

But there certainly can be no doubt that when it comes to "carefully calculated flatulence," there is no person on Earth with greater first hand expertise than msoja.

Posted by: Patrick_M | April 18, 2010 7:29 PM | Report abuse

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Posted by: kaylaella | April 19, 2010 5:23 AM | Report abuse

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