It’s safe to say banking titan Goldman Sachs (GS) isn’t going to be winning any popularity contests these days.

A longtime subject of jealousy, Goldman has seen its public perception turn even more negative in recent months as it’s become clear the bank is prospering wonderfully while most of America suffers.

Goldman, which received $10 billion in Troubled Asset Relief Program cash and reported its best quarterly profit in history this week, has also been the subject of countless conspiracy theories that underscore the anti-Wall Street sentiment in America.

So what’s behind the negative perception of Goldman Sachs these days? It appears to be a mixture of old-fashioned jealousy, concerns about Goldman’s influence on the government and the result of an imperfect government bailout that, intentionally or not, left the bank even more powerful than it was.

“I’d be startled if the next five years don’t show a formidable rolling up of power and strength for Goldman. It’s their world,” said Charles D. Ellis, a consultant to Goldman for 30 years and author of The Partnership: The Making of Goldman Sachs.

Negative feelings about Goldman may have been best reflected in a recent piece in Rolling Stone by Matt Taibbi, who accused the bank of being behind every major market manipulation in the U.S. since the Great Depression.

Goldman fired back, calling the article a “hysterical compilation of conspiracy theories” and saying, “we reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good.”

Lacking Competition, Goldman Hits a Home Run

Known for compensating its employees handsomely, Goldman is an easy target.

It is clearly benefiting from diminished competition thanks to a financial crisis that forced the collapse of Lehman Brothers, the takeover of Merrill Lynch (BAC) and fire sale of Bear Stearns. At the same time, chief Goldman rival Morgan Stanley (MS) has scaled back its risk profile.

“There’s less people out there willing to take the positions they are. If they get it right, they are going to hit a home run,” said Charlie Geisst, a finance professor at Manhattan College.

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Goldman’s second quarter felt more like a grand slam. The bank shocked Wall Street with a 46% surge in net revenue and a profit of $3.44 billion -- more than it earned all of last year.

“Historically, anyone who makes a lot of money at a time of widespread suffering is going to be subject to suspicion and hatred,” said Gary Weiss, a former contributing editor at Portfolio and author of Wall Street Versus America. “Goldman Sachs is like the king rat of Wall Street.”

But considering the financial world neared an apocalypse just nine months ago, shouldn’t we just be happy someone is making money?

“I think so. It gives the impression, rightly or wrongly, that things are not as bad in the banking world as we think they are,” said Geisst. “Parenthetically, they still are.”

Plus, at a time when the U.S. could use a couple of bucks, Goldman’s profits will translate to higher tax revenue for the government.

Friends in High Places

But the raw feelings about Goldman run deeper than simple jealousy.

“There is what appears to be an undue influence of Goldman Sachs on the government,” said Weiss.

There’s no question Goldman is well-represented in the government as former CEO Henry Paulson was the chief architect of the $700 billion TARP plan and former Goldman banker Neel Kashkari doled out the cash. Former Goldman co-chairman Stephen Friedman was, until recently, chairman of the New York Fed, which is now presided over by Goldman alumnus William Dudley.

But Goldman defenders say it should be no surprise that a bank that prides itself on hiring the best and brightest has scores of alumni serving in the public sector. And there’s no smoking gun that shows these ex-Goldmanites gave the bank an unfair advantage.

“There is a view that there is a cabal of Goldman people slipping into and taking over the government. That’s completely false. It doesn’t have a chance of flying,” said Ellis.

Questions have also been raised about the bailout of insurer American International Group (AIG), a move that allowed Goldman to be paid in full as an AIG counterparty. 

Conspiracy Theories Thrive

The handling of the bailout and sheer number of Goldman alumni in positions of power have only added fuel to the fire of the conspiracy theories.

“It sure looks as if Goldman manipulated the crisis for its own benefit. That’s not a completely wacked-out way of looking at things,” said Weiss, who says he is against conspiracy theories.

While he called the Goldman conspiracy theories “diversionary” and “off base,” he said, “they are not in the realm of 9 /11 conspiracies; they are much more grounded in fact than most conspiracy theories.”

Ellis said the bank is being unfairly criticized for its role in the financial crisis.

“The reality is they were participants [in the crisis] but so were you, me and everyone else. There is no one who didn’t play a role in getting us into this mess,” said Ellis.

At the end of the day, does it really matter what the public thinks of Goldman?

“They’re unpopular but they’re also extremely powerful,” said Geisst. “Money means power on Wall Street and they have plenty of it.

There is one group, however, who would find it hard to hate Goldman Sachs: the bank’s shareholders. Since plunging to $47 in November, Goldman’s stock has more than tripled to $155 per share.