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By Philippe Legrain 1 COMMENT

Goldman’s use of intelligence drawn from its unrivalled pool of market sources to trade on its own and its clients’ behalf – a strategy championed by Mr Blankfein – has been a competitive advantage. Bank executives speak of its ability to manage – even “embrace” – conflicts of interest that arise from its position at the centre of information and capital flows.

In plain English, big, complex banks such as Goldman Sachs make money by abusing their privileged position as the gatekeepers to capital markets. This complex monopoly must be broken up.

Hat tip: FT

Posted 24 Apr 2010 in Blog, Finance, United States
  1. Ian Fraser says:

    Philippe,

    I couldn’t agree with you more. I’ve been banging about this for years – see

    Joseph Stiglitz on breaking up the banks
    http://www.ianfraser.org/?p=755

    John Kay on breaking up the banks
    http://www.ianfraser.org/?p=917

    Mervyn King on breaking up the banks
    http://www.ianfraser.org/?p=952
    http://www.ianfraser.org/?p=985

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