OT: Why I am Leaving Goldman Sachs

[samsays]

http://www.nytimes.com/2012/03/14/op...s.html?_r=1&hp


Whether Greg Smith is bitter, honest - both or neither - culture has meant everything in terms of my happiness at work and our overall success in business (consulting industry)...important to remember...even as competition grows in all that we do

[Louis]

Unfortunately, I doubt this will have any impact. There's too much money to be made. (short term)

[firerescuefin]

My undergrad is in finance...spent 2 years in Investment Banking, and decided after about 6 months much of the same, but my belief was that the problem was systemic, not company specific. Money and power corrupt....there really hasn't been much new under the sun for thousands of years.

This article was aimed at a couple of specific people, and they know who they are.

I wouldn't want to be a high net-worth advisor at Goldman this morning...especially if your clients already had a few questions.

[fiamme red]

So he's just discovered in 2012 that Goldman Sachs is morally bankrupt. Better late than never, I guess.

When is his book going to be published?

[54ny77]

Wow.

Right on point.

My old firm blown up by same leadership strategy.

Hey, F U Stan O' Neal.

[Jaq]

Me no care! Me just want 12% average annual return paid out in COOKIES!!!!!

[William]

While I commend the man for leaving and voicing his knowledgeable experience on the current state of affairs at GS, this certainly didn't happen overnight. And, I'm sure he's walking away well padded from earnings gleaned from said practices in the latter years.






William

PS: Where is Teddy when you need him.

[goonster]

Originally Posted by fiamme red

So he's just discovered in 2012 that Goldman Sachs is morally bankrupt.

I'm as eager to heap scorn on today's Wall Street as most.

However, a healthy, ethical financial industry that promotes efficient allocation of capital and supports steady long-term growth would actually benefit all of us.

This is a discussion very much worth having in the public sphere, imho, and the OWS populist clamoring from below, and gov't regulation (Dodd-Frank, lolz) are no substitute for some real soul-searching within the system.

[thenewguy11]

All the things he rings his hands over about taking advantage of customers, etc. were described by Michael Lewis in Liar's Poker way back in 1989 (fantastic book BTW). This is nothing new. As the saying goes, "Where are the customer's yachts?"

I will say it must be fun to resign and throw a grenade on your former employer from the pages of the NY Times opinion section though.

[fiamme red]

Originally Posted by goonster

However, a healthy, ethical financial industry that promotes efficient allocation of capital and supports steady long-term growth would actually benefit all of us.

I agree. But the current atmosphere on Wall Street is all about short-term profits.

I really doubt that Goldman Sachs has changed so much in the last 12 years, as the author says. It's more that as he's been promoted into more responsible positions, he's gained an insight into the inner workings of the company that he didn't have when he first started out there.

[laupsi]

Originally Posted by Jaq

Me no care! Me just want 12% average annual return paid out in COOKIES!!!!!

this method of paying out works well for Kevin of "The Office" too...

[PQJ]

Originally Posted by fiamme red

I really doubt that Goldman Sachs has changed so much in the last 12 years, as the author says.

That was my initial reaction as well. But consider that the alleged cultural shift coincides to a degree with the repeal of Glass-Steagall, and it's not so far fetched. That little bit of deregulation is a huge reason for what went on in the go go 00s.

[54ny77]

I-banks became giant prop desks/hedge funds, in every product category, and arbed their own clients.

That's because at least one of the schlubs everyone sat next to and worked side by side with 18-20 hours a day left 3 years prior to go to these things called hedge funds, which shuffled the decks in their favor and made a lot of money.

The chumps who remained said, "Hey, me too." Eventually, those chumps ran the firms. And the rest, as they say, is history.

Originally Posted by goonster

I'm as eager to heap scorn on today's Wall Street as most.

However, a healthy, ethical financial industry that promotes efficient allocation of capital and supports steady long-term growth would actually benefit all of us.

This is a discussion very much worth having in the public sphere, imho, and the OWS populist clamoring from below, and gov't regulation (Dodd-Frank, lolz) are no substitute for some real soul-searching within the system.

[thenewguy11]

Goldman Sachs doesn't do commercial banking so the repeal of Glass-Steagall doesn't play into it for them (Citi is another story I suppose). I think the real cultural milestone came when the firm went public in 1999. The partnership structure forced a longer term mentality on the senior management, which is lacking in the public arena with a quarterly focus.

[goonster]

Originally Posted by PQJ

the alleged cultural shift coincides to a degree with the repeal of Glass-Steagall

That, and taking the company public. (IPO was in '99)