Reply #12: You Won't Read This Story About Goldman

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http://online.wsj.com/article/SB10001424052748704281504576331811046204714.html?mod=WSJ_myyahoo_module

Goldman Sachs Group Inc. is in trouble again....No one seems to care much about Goldman's latest troubles, and many Americans seem numb to more allegations of wrongdoing related to the financial crisis. Yet they keep coming, especially at Goldman. One of the biggest was last week's disclosure that the Commodity Futures Trading Commission's staff has "orally advised" the company that it "intends to recommend ... aiding and abetting, civil fraud and supervision-related charges" against the trade-clearing unit at Goldman...In addition, Goldman said the Justice Department is reviewing data related to credit-default swaps and fee arrangements for clearing of credit-default swaps, including potential anticompetitive practices. European regulators are also investigating.

And remember Abacus? That's the collateralized debt obligation created by Goldman that morphed into a $550 million fraud settlement. There are more subpoenas on that gem, Goldman said last week. Goldman declined to comment beyond the disclosures it made in its quarterly report and didn't offer any additional comment Wednesday. In the filing, the company said it is cooperating with the CFTC, now led by former Goldman executive Gary Gensler.

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And what about Goldman Chief Executive Officer Lloyd Blankfein? One of the few people to publicly suggest he should go is gadfly shareholder Evelyn Davis, known for proposing radical ideas...Even she didn't sound convincing at Goldman's shareholder meeting. "I want people to know I have nothing against you personally," the 81-year-old Ms. Davis told Mr. Blankfein. "And you are not a bad looking guy." He said he had no plans to step down.

It's hard to believe that any CEO at any other publicly traded company would have Mr. Blankfein's job security. Tony Hayward didn't survive at BP PLC. Advanced Micro Devices Inc. CEO Dirk Meyer resigned in January, even though the stock had been on a four-month surge...Yet Goldman shareholders have brushed aside the regulatory and legal messes-and Mr. Blankfein's questionable handling of the Goldman boardroom.