Rather than regulate Goldman down to the average, a more rational approach would be to create an environment that rewards financial services innovation and helps other companies rise to Goldman’s level
Critics have lined up against Goldman Sachs Group in the days since the U.S. Securities and Exchange Commission announced a fraud lawsuit against the Wall Street giant.
Buyers and sellers could deal directly without investment banks in the middle, but this would be like farmers trying to sell food to consumers directly without the help of grocers in the middle. Problems and inefficiencies quickly arise that cause prices to climb.
[This article has been reproduced with permission from Knowledge Network, the online thought leadership platform for Thunderbird School of Global Management https://thunderbird.asu.edu/knowledge-network/]