In an honest, well-functioning org, those are decisions made by completely different groups that do not (and should not) report to each other. It's actually kind of depressing that we (and I include myself in that) assume otherwise by default.
Source: I've worked in and with many successful organizations, and worked at one place with proper internal processes, so I know what's possible
Who is they? Do you have any idea what its like working at an org the size of GS, that you actually think these two completely different departments discussed the matter with each other?
Uh yes, the head of ECM should know how GS is using his largest clients' products to the degree legally permissible.
One of the ways boutiques pitch themselves against the bulge brackets is by emphasizing that they won't generate these sorts of headlines.
What is the Investment Bank version of "flogging round the fleet"?
I don't agree at all. Different groups should be supporting each other and the overall bottom line instead of their parochial, narrow self-interests - the latter is a poorly functioning org.
If by group A delaying its $100M cost-cutting, group B can add $1B to the bottom line, it would be a corporate and group management failure for group A not to cooperate.