Now Goldman, expected to announced second-quarter earnings on Tuesday, finds itself in a no-win situation.
If earnings are too good critics may lambaste it for ramping up risk too much and embracing a hedge fund-like model that could make it vulnerable to big market swings.
If they fall short, investors may accuse the firm of failing to live up to its reputation for being more aggressive and intelligent than its rivals.
Goldman’s earnings, by the way, are expected to be massive. Meanwhile, Megan McArdle goes to bat for Goldman by taking a swing at Matt Taibbi, in which she doesn’t actually refute anything Taibbi’s written, she just instead says his conclusions are “stupid” and compares him to Sarah Palin.
