Goldman's $500 million small-business offer is no great deal

Updated

Are you angry at Goldman Sachs Group (GS) for potentially paying itself $23 billion in bonuses a year after you rescued it from oblivion? If so, would you be willing to let go of that anger in exchange for a vague apology and a $500 million fund to help small businesses? That's the latest Goldman trade on the table.

Before getting into the details of Goldman's offer, let me disclose that two years ago on CNBC I supported what Goldman CEO Lloyd Blankfein did back in 2007 when he helped hedge Goldman's exposure to subprime mortgages. And a few weeks ago, I told Directorship that Blankfein deserves credit for saving Goldman and for fending off a torrent of ill will directed against it. However, he was tone deaf when he joked about Goldman doing God's work -- most people didn't get the joke.

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