Two more explanations
Reader comment on: The Temptation of Servitude
Submitted by Conservative Guy (United States), Dec 28, 2009 21:36
Here are two other reasons: 1. Mr Cohen, who is a highly regarded financial institution counselor and bank M&A lawyer, recognizes that government regulation is often bad for smaller, more entrepreneurial entities but good for larger, more politically connected entities which are better able to game the political system. That kind of regulation will lead to more deals and allow Mr Cohen's larger but slower growing financial institutions to grow by acquiring. Good for his clients and his law firm.
2. As a partner at a large and well-regarded law firm, Mr. Cohen has a vested interest in the status quo. What's good for Sullivan & Cromwell is good for America. Asking for more government regulation and higher capital requirements will allow Mr. Cohen's clients to lobby the regulators for creative ways around the regulation and higher capital he is requesting and in that lobbying battle, Goldman and S&C will prevail and the public anger at the Great Crash and its aftermath will be forgotten and the game will go on.
Good piece here. Happy New Year.
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