Goldman Sachs played much the same role in the Greek debt crisis as it did in the U.S. subprime mortgage crisis.
The bank’s executives induced the governments of Greece and Italy to make foolish investments. It then unloaded those investments on suckers, and then made financial bets that these investments would crash.
Now European officials who came out of Goldman are trying to punish the people of Greece, and maybe of Italty tomorrow, for the result.
This is not to say that the Greek and other governments would not have gotten into trouble by themselves or that Goldman Sachs was the only bank that contributed to the crisis. But, as the linked articles below indicate, Goldman bankers helped the crisis along, profited from what they did and continue to influence government policy.
Goldman Sachs: Masters of the Eurozone by Gaius Publius for Down With Tyranny (hat tip to naked capitalism).
What price the new democracy? Goldman Sachs conquers Europe by Stephen Foley for The Independent (2011)
Wall Street Helped to Mask Debt Fueling Europe’s Crisis by Louise Story, Landon Thomas and Nelson D. Schwartz for The New York Times. (2010)
Banks Bet Greece Defaults on Debt They Helped Hide by Nelson D. Schwartz and Eric Dash for The New York Times (2010)