By now you have heard that the SEC charged Goldman with defrauding investors in its conflict of interest and lack of disclosure regarding the sale of complex CDOs. This could be a strengthen the hand of reformers on Capitol Hill and in the White House. Perhaps the days of open cheating and self dealing are drawing to a close.
Why is Goldman still a bank anyway? Clearly they can make enormous sums and the market believes they are well capitalized. Why continue to have access to the Fed Discount Window? Answer: because they are Too Big to Fail.