There’s general ignorance among many members of Congress and most of the media on this subject.
When a financial company creates a form of security and places it up for sale, it is technically a market-maker, not an adviser and, therefore, has no fiduciary responsibility. Neither is it a broker, unless it sells the security.
Up to recent SEC admonitions, brokers have had no fiduciary responsibility. They do have to sell what is deemed ”suitable” for the customer. Therefore, a broker cannot sell risky securities, for example, to widows and orphans without the latter's express knowledge. They can sell suitable risks to highly sophisticated investors.
Goldman Sachs, under the Congressional spotlight, were market- makers. They were also dealing with seasoned institutions who knew risks and frequently sold short, in the hope markets would fall; often with both positions at the same time, as a hedge.
Advisers, on the other hand, generally give advice and suggestions only. They are not market-makers, nor are they brokers.
