Not Getting It

A quick summary of Goldman Sachs' Q1 conference call here. Two things stand out:

Goldman is definitely going to settle. Yes, right now, they're fighting the SEC, but they very clearly acknowledged that their options are wide open. They did this multiple time. When they can get to a deal that's reasonable, they'll settle.
They were suckerpunched. They have no idea what the SEC plans to do next.

In other words, they still think the old rules are in effect, and that the end result will be a slap on the wrist. Even though, by their own admission, they didn't see this coming and don't have any idea what the SEC's plans are for the suit.

It's the same idiotic hubris on display that led to the subprime meltdown in the first place.

And to that point, they think it's not material whether the Paulson or ACA selected the assets, since EVERYTHING crashed from that year.

Morons. "But, officer, it doesn't matter that I shot her through the window, since she'd already been thrown off the roof and was going to die anyway." Who the hell is giving them legal advice right now? Or is this just more bluster and bravado from a group who don't yet realize their Masters of the Universe club membership has been revoked?

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