“After reporting apparently better than expected earnings this morning, Goldman Sachs Group Inc (NYSE:GS), the most prestigious investment bank in the world, is getting hit hard in early morning trading, down nearly 1.86 percent on the day at the same time the S&P 500 was close to break even. The stock had been down nearly 4 percent but rebounded after word that the Fed might continue its quantitative easing injections into the market surfaced.”
“Great earnings news followed by the stock underperforming is always worth consideration. Could it be that such a reaction is really a welcome to a new market environment of financial obfuscation and manufactured reality?”
“During bank earnings season, it is obfuscation that concerns Dennis Kelleher, president and chief executive officer of Better Markets, a financial reform advocate.”
“Wall Street intimidates policy makers, law makers and regulators — not to mention very knowledgeable non-specialists as well as the public generally — with needlessly arcane, dense and too often impenetrable language,” he said to ValueWalk, as he considered bank earnings. “This isn’t an accident. I call it ‘created complexity’ and it is a tool Wall Street uses to confuse, distract, time-suck and hide. The SEC and other regulators should have stopped much of this, especially in financial statements, a long time ago.”
“In a recent blog post, Kelleher says the largess of the government-backed large banks at a time when average Americans are struggling “turns the economy upside down.”
Read the full ValueWalk article by Mark Melin here.