Regulation Theater

I think Goldman Sachs is still secure. It's got a unique relationship with the government and the little infraction for which they are being slapped is the sort of thing likely dreamed up over a golf game. The politicians think they need to be seen doing something, and the bureaucrats have stopped watching porn long enough to realize they look bad, but Goldman is still a golden goose to them all. Nobody will get shut down, not the SEC, not Goldman- we'll see a few personnel changes, a bigger regulatory budget, and more important sounding nonsense from ethically challenged creatures.

They play a high stakes game though. The government has the guns and that pesky predilection for claiming the right to use force. The government is also staffed by people who like their cushy jobs enough to stab the folks from Goldman Sachs in the back if it looks like the peasants are starting to channel Robespierre. Certain cracks are already beginning to appear elsewhere in the world- politicians in trouble see a scapegoat they can blame their own irresponsibility on.