To great fanfare, this week Goldman Sachs introduced the report of its business standards committee, which makes recommendations regarding changes for the internal structure of what is currently the fifth-largest bank-holding company in the United States. Some recommended changes are long overdue - particularly as they address perceived conflicts of interest between Goldman and its clients.
What is most notable about the report, however, is what it does not say. No mention is made of any issues of first-order importance regarding how Goldman (and other banks of its size and with its leverage) can have big negative effects on the overall economy. The entire 67-page report reads like an exercise in misdirection.