Goldman Sachs seems to be in another jam, at least in the eyes of the public. They have decided to establish a program to inject $500 million in the small business sector. This was said to be an attempt at providing capital to the small businesses that play a "vital role" in creating wealth, fostering innovation, and adding jobs. $300 million of the injection has been earmarked for community development financial institutions which then go ahead and finance small companies. The other $200 million has been tagged for education.
The public obviously has not necessarily reacted as GS hoped. This was an attempt to soften Goldman's image, they even brought in Buffett to serve on the advisory board. However, it is being looked upon as an abuse of shareholder's money and it seems as though Goldman's plan to improve its image has backfired a bit.
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Why not a non profit banking company to make small business loans. Because its illegal ever heard of such a thing. Why because goldman' bank of america and all the other mega financial institutions want nothing of the sort. Wallmart wanted to have a bank of their own for other reasons of course but they can not get a charter from the federal goverment to run their own bank. The financial interests are just to powerful.
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