Republicans, it appears, instinctively want to defend Goldman Sachs. Yet, they should think carefully before weighing in on this matter, even if both Republican SEC commisioners voted against filing charges. A GOP embrace of the "Giant Vampire Squid," as Goldman is affectionately called in popular parlance, could be political suicide and is not necessarily all that principled.
Republicans should remember that Goldman Sachs employee contributions to Obama in 2008 were second only to the University of California, in total amount for any single employer, according to FEC filings. In all, three quarters of Goldman's $5.9 million of employee political contributions went to Democrats in that election cycle.
Here's the thing: Goldman bankers made a bad investment in Obama; Republicans do not need to bail them out.
Moreover, as much as the firm has thrived under American capitalism, Goldman prefers to ingratiate itself with the fashionable limousine liberal set rather than philanthropically support conservative organizations or rhetorically support American free enterprise. The firm in many ways epitomizes a dynamic, competitive capitalism that overpowers inferior rivals with ruthless efficiency. Yet, for years, Goldman's publicly articulated morality has been a nauseating reiteration of politically correct, hypocritical cant about global corporate citizenship and social sustainability. Defenders of freedom they are not.
Bloomberg reports that Illinois Democratic Senate candidate Alexi Giannoulias has already called on his Republican opponent Mark Kirk to return tainted Goldman campaign contributions. But Republicans do not deserve to be tarred with Goldman's questionable strategies, and they should not blindly rush to associate themselves with Goldman now. Goldman is getting what it deserves and what--as its political donations suggest--it wants.
Whatever its impact on financial regulatory reform, both sides should recall that this is primarily a fraud case subject to a legal process. In this process, Goldman has ample resources to defend itself. Republicans need not contribute to the politicization of this case by reflexively backing one side, especially a side as unpopular and undeserving as Goldman Sachs.