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Archive for April, 2010

Louisiana Fishing Capital Braces For Giant Oil Spill

VENICE, La.—Boat captains here boast that Venice, a remote outpost at the tip of the Mississippi Delta, is the fishing capital of the world. But a rapidly expanding oil slick from a leaking deepwater well could leave a permanent mark here.

Hundreds of shrimping boats sail from here, dragging their nets around the inland estuaries and the rich seabed of the Gulf, which teems with white, pink and brown shrimp. Fishermen, commercial and recreational, scour the area for kingfish, red snapper and marlin. The Gulf region accounts for about a fifth of total U.S. commercial seafood production and nearly three-quarters of the nation’s shrimp output, while nearly a third of all marine recreational fishing trips take place on Gulf waters, according to the Fisheries Service of the National Oceanographic and Atmospheric Administration.

“This is the Delta,” said Robert Cossé, the marine division commander of Plaquemines Parish Sheriff’s Office, while piloting a boat across the Pass-a-Loutre Wildlife Management Reserve. “Lots of life.”

The threat follows the explosion of a deepwater oil rig last week. Spill responders, who have so far failed to cap the flow of oil from the well, say the slick could hit shore before the weekend, prompting them to try to burn off the crude a few miles from shore.

Goldman Case Shows Wall Street’s True Colors

NEW YORK (MarketWatch) — We’re still feeling the aftershocks from the bombshell complaint the Securities and Exchange Commission filed against Goldman Sachs Group Inc.

Though the case is a long way from being resolved — and appears to have some big legal weaknesses — several things are clear by now. The once untouchable Goldman has suffered a severe blow to its reputation. The SEC has taken a small step to restoring its own once-good name.

This politically polarized case (which got through a divided Commission by one vote) has been a shot in the arm for the Obama administration’s efforts to get financial reform through Congress. And more big Wall Street firms may be in the SEC’s crosshairs for doing similar things to what Goldman is alleged to have done.

But even after the worst financial crisis since the 1930s, the Wall Street banks have won victory after victory in their lobbying efforts and have paid their undeserving minions rich bonuses, which have really stuck in the public’s craw.

I fervently hope that finally, finally something will be done to curb this extraordinary abuse of power by these opaque, unaccountable firms that have done so much damage.

At a time when most Americans are wary, even hostile, to big government–and rightly so–they just as decisively support reining in Wall Street’s dukes and duchesses with sensible regulation that prevents them from screwing things up again for the rest of us.

Is Goldman Sachs Making Too Much Money?

There’s no shame in making money. Making money is, after all, every company’s goal. And when our companies do well, that’s generally good for the country. Under normal circumstances Goldman Sachs would have every reason to brag about it’s first quarter profits.

But now—with Goldman facing charges for securities fraud and apparently seeking to block financial reform legislation—the bank’s windfall profits seem to raise the question of whether it’s making its money legitimately.

Goldman reported an impressive $3.3 billion first quarter profit today. That’s its second highest quarterly profit since going public in 1999, and it comes after earning a record $4.79 billion in the fourth quarter of last year. It’s also an increase of 91% on the year. And on revenue of $12.8 billion it’s a tidy 26 cents profit for every dollar it earned, which is actually down from the from the almost 50 cents of profit it made for every dollar of revenue the quarter before.

Of course, these profits have nothing to do with the 2007 trades the Securities and Exchange Commission says are fraudulent. And Goldman’s reputation as the gold standard of banks is well-earned, so it should be no surprise that it’s doing well.

But you still have to wonder just how it’s making so much money in an otherwise anemic economy.