Greg Smith Quits Goldman Sachs

Big story yesterday was Greg Smith's rather public (NYT Editorial) departure from Goldman Sachs, the giant NY investment bank and engine of the Obama Nightmare.  I have a few thoughts on Mr. Smith's motivation, and I imagine he's socked away plenty of quid to float a nice life doing what he wants.  Additionally, I am not moved by what he seems to portray as a culture that has evolved during the short (12 years) time of his employment.  Although I have no inside information, my sense is that Goldman was as rapacious when it hired him as it is now.

No, my point in linking to this is not to question Mr. Smith's decision or motives.  My point is to question--once again--the wisdom of investment banks and brokerages trading as public corporations.  That is, I would like to be better educated on why it is that an entity with financial interests of its own (outside of those of its clients) can/should continue to occupy such a central place in our economy.  Yes--I can hear it now...."where are your free market principles now, CW?"  coming from wags who have neither principles or knowledge of free markets.  A market in which a giant investment bank manipulates conditions and its clients in order to gain on its own bets--and does so with far more information than any of its clients--is NOT a free market.  I believe that the legislative changes of the 1990's leading to venerable partnerships becoming publicly traded companies was--on the whole--not a positive thing for our economy.

I would welcome alternative views on this subject.