Why I Am Leaving Goldman Sachs, Toxic Environment
Greg Smith is resigning today as a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa — Via The New York Times report.
Executive Director Greg Smith of Goldman Sachs publicly criticizes CEO Lloyd C. Blankfein and President Gary D. Cohn, in one of the most popular newspapers in the world, the New York Times. This is really big stuff.
In November of 2009, Blankfein declared in an interview: “I’m doing God’s work.” In 2007 he made $73 million, according to Forbes, and only $25 million in 2008, as the economy tanked.
The corrupt culture on Wall Street is nothing new to us. We’ve heard about the bank bailouts, the house loan scandals, bank shysters going to prison, and others not going to prison that should have.
Smith really shines on a couple of notes:
I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.
What are three quick ways to become a leader? a) Execute on the firm’s “axes,” which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit. b) “Hunt Elephants.” In English: get your clients — some of whom are sophisticated, and some of whom aren’t — to trade whatever will bring the biggest profit to Goldman. Call me old-fashioned, but I don’t like selling my clients a product that is wrong for them. c) Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym.
And now you have an insider from the top openly admitting that the stock game is rigged. Then he slams the door behind himself. This is really big stuff. Maybe even toxic.
