Goldman Sachs Slapped With 24 Minute Fine: This Is What’s Wrong With Corporate America

Filed in Uncategorized by on December 7, 2012 0 Comments

The average speeding ticket in the United States costs around $150. For the majority of middle class Americans, that requires a day or two of work to pay off. For those living at the poverty level, it could take an entire week, and that includes hard labor day in and day out. So, is it fair that the so-called massive fine that Goldman Sachs was recently slapped with will take the company just 24 minutes to pay off?

Lloyd C. BlankfeinThe Commodity Futures Trading Commission fined the Wall Street firm for not watching a trader who was using fake trades to hide a trading position of $8 billion from officials.

Of course, he was fired, but the CFTC weren’t notified until much later. So, the regulators fined the firm $1.5 million, which means that with their revenues of $8.35 billion last quarter, they make around $63,000 per minute. It will take them around 24 minutes to pay off the fine. As contrast, if it took 24 minutes of work for the average middle class American to pay off a speeding ticket, the citation would cost around eight bucks.

Lloyd Blankfein and the other top executives likely laughed when they heard about the pitiful fine that they were to receive, dismissing it as “chump change.” Why is it that someone can spend three years in prison for writing a bad check, but companies that purposely defraud regulators by not reporting don’t get anything more than a light slap on the wrist?

Today, Goldman Sachs CEO Lloyd Blankfein is likely sitting in his $32.5 million (which took the company about 8 hours to pay off by the way) house in The Hamptons and laughing.

Photo credit: Financial Times Photos/Wikimedia Commons

Gabriel Legend covers current events for Gather News, and writes horror fiction. If you like an article from Gabriel please share it using the social media links below.Follow Gabriel Legend on Twitter (@GabeLegend).

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I'm a complete geek who loves all sorts of geeky stuff like technology, Star Trek and Dungeons & Dragons. I play guitar and sing a little, and I write horror fiction whenever I'm not covering the news for Gather.

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