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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.