Business
Wall Street's Financial Aftershocks
By Harold Meyerson, Washington Post 3/3/10
Mar 4, 2010 - 10:46:04 AM

Like earthquakes, Goldman Sachs can strike anytime. Its work can slumber undetected for years, only to erupt, unanticipated, with catastrophic consequences.

Consider: In 2001, Goldman set up some opaque financial transactions for the Greek government, the New York Times reported last month. Last year, when a new government took office, it found that Greece's debt was far greater than the old government had acknowledged, thanks to deals that allowed borrowing to be treated as currency swaps rather than as loans. It also turned out that Greece's deficit wasn't 3.7 percent of gross domestic product but 12.7 percent.

The role of Goldman Sachs and other U.S. investment banks in helping the Greek government hide its debt is being investigated. But the results of these revelations were Earth-shaking. The Greek government is downsizing, which will deepen that nation's recession. The euro, the continental currency that Greece employs, has come under attack by currency traders. The other members of the European Union have been compelled to keep Greece from defaulting -- which has stirred up a backlash within affluent E.U. nations that threatens the entire project of a united Europe.

All in a day's work on Wall