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Farewell to Wall StreetAfter four years as US business correspondent, Andrew Clark is heading home. He recalls the extraordinary events that nearly bankrupted America – and how it's bouncing back
Farewell to Wall Street | Business | The Guardian
Each morning, Wall Street awakens to the clitter-clatter of helicopter blades thrashing through the air. The financial industry is awash with men in a hurry – and for the most harried members of this money-pushing elite, a chopper ride is truly the only way to commute to the office.
There's a helicopter landing pad on a pier poking into New York's East River at the end of Wall Street. Chartering a four-person chopper for a one-way trip from the summer seaside playground of the Hamptons costs $3,000. After a long slump, corporate traffic is, very tentatively, beginning to re-appear.
Has Wall Street changed as a result of the credit crunch? Not really, he says. "Is there a fundamental shift? Clearly the banking system is less leveraged and therefore less risky than it was – and I suspect it will be for a while – but the core business hasn't changed."
It could all have been so different. For a few cataclysmic weeks in the autumn of 2008, I wondered whether I would end up filing a story to the Guardian that began with the words: "The global financial system collapsed today."
A few of those on Wall Street, including maverick hedge fund manager John Paulson and the top brass at Goldman Sachs, spotted what was going on and ruthlessly gambled on a crash. They made a fortune but turned into the crisis's pantomime villains. Most, though, got burned – the banks are still gradually running down portfolios of non-core loans worth $800bn.
If the government hadn't bailed out the financial system, most, if not all, of Wall Street's top players would have failed. But there's never been much penitence. On a media conference call last year, I asked Goldman's chief financial officer, David Viniar, whether he felt guilty about his firm's actions, particularly in pushing AIG towards bankruptcy by making billions of dollars of collateral calls on the troubled insurer. His response was that there was "no guilt whatsoever", and I was roundly mocked for even asking the question. One blog widely read by Wall Street traders, Dealbreaker, sneered: "Guardian reporter would like to know if Goldman Sachs is racked with guilt." A commenter on that site accused me of "insane anti-capitalist, commie witterings".
Farewell to Wall Street | Business | The Guardian