Warren Buffet pockets $2 billion on Goldman warrants
Of course, the U.S. government could have pocketed similar profits with warrants, a move that would have benefited the U.S. taxpayers and helped offset the $780 billion in initial bailout funds. But the U.S. Treasury Department, in its deep concern for the welfare and health of Goldman, has held back from asking for a reasonable return on investment.
The results of that highly favorable policy decision by a Treasury Department staffed with ex-Goldman bankers grows more evident by the quarter. With Goldman reporting record earnings as a result of risky trading behaviors, the investment bank is now a poster child for socialized risk paired with privatized profits.
Many pundits now consider Goldman Sachs to be an untouchable, Government-sponsored entity that is insulated from the consequences of its actions. In this context, the success of Warren Buffet's Goldman investments -- something that the U.S. taxpayers should have tasted as well -- has become an object lesson in the risks of crony capitalism.