Op Ed loses Goldman Sachs $2 billion dollars

Discussion in 'Politics' started by Chris, Mar 15, 2012.

  1. Chris
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    Chris Gold Member

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    Goldman Sachs saw $2.15 billion of its market value wiped out after an employee assailed Chief Executive Officer Lloyd C. Blankfein’s management and the firm’s treatment of clients, sparking debate across Wall Street.

    The shares dropped 3.4 percent in New York trading yesterday, the third-biggest decline in the 81-company Standard & Poor’s 500 Financials Index, after London-based Greg Smith made the accusations in a New York Times op-ed piece.

    Smith, who also wrote that he was quitting after 12 years at the company, blamed Blankfein, 57, and President Gary D. Cohn, 51, for a “decline in the firm’s moral fiber.” They responded in a memo to current and former employees, saying that Smith’s assertions don’t reflect the firm’s values, culture or “how the vast majority of people at Goldman Sachs think about the firm and the work it does on behalf of our clients.”

    Former Federal Reserve Chairman Paul Volcker, 84, whose “Volcker rule” would limit banks like New York-based Goldman Sachs from making bets with their own money, called Smith’s article “a radical, strong” piece. “I’m afraid it’s a business that leads to a lot of conflicts of interest,” Volcker said at a conference in Washington sponsored by the Atlantic.

    Executives at Goldman Sachs haven’t changed their behavior even after the firm paid $550 million to settle a fraud lawsuit with the Securities and Exchange Commission and was accused by the U.S. Senate’s Permanent Subcommittee on Investigations of misleading clients, Smith wrote. The company published a report in January 2011 with 39 recommendations on how to improve its business practices and client focus.

    “Over the last 12 months I have seen five different managing directors refer to their own clients as ‘muppets,’ sometimes over internal e-mail,” Smith wrote. “It astounds me how little senior management gets a basic truth: If clients don’t trust you they will eventually stop doing business with you.”

    The article was e-mailed across Wall Street. One employee at Bank of America Corp.’s Merrill Lynch division, a competitor to Goldman Sachs, said his team was told not to send copies to clients. Parodies such as “Why I am leaving the Empire, by Darth Vader” on thedailymash.co.uk and theborowitzreport.com’s “A Response from Goldman Sachs” also circulated.

    Goldman Stunned by Op-Ed Loses $2.2 Billion - Businessweek
     
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    Last edited: Mar 15, 2012
  2. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Damn!
     
  3. Neotrotsky
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    Neotrotsky Council to Supreme Soviet

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  4. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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  5. Neotrotsky
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    Neotrotsky Council to Supreme Soviet

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    just the facts
     
  6. editec
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    editec Mr. Forgot-it-All

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    Like I've been saying for quite some time.

    The villians have names.

    OWS was pretty stupid when it decided to attack all of wall street and when it decided to tell itself that it represented the 99% and the 1% was the enemy.

    The ENEMY are criminals, folks, not rich people.

    Those criminals ripped off PLENTY of the 1% too. Not every rich person is guilty and not every non-wealthy person is innocent

    And a LOT of those criminals worked for GS.

    Neotrot was merely pointing out one of Obama problems...plenty of those criminals supported his campaign.

    Of course they ALSO supported everybody elses campaigns, too, because they know how to PREPAY for protection from the law.

    The fact that NO BANKSTER has gone to prison pretty much tell us all we need to know about this system, kiddies. Neither the Republicans NOR the DEMOCRATS are going to go after the villians.

    You guys just keep sticking your heads in partisan sand and telling yourself the problem is one party BUT NOT THE OTHER

    THAT is exactly what the masters of both parties want you to think (actually all they want is for you to NOT think)
     
    Last edited: Mar 15, 2012
  7. Si modo
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    Si modo Diamond Member

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    I wonder if this will affect their donations to Obama.
     
  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Obama? Goldman Sachs? Wait a second that sounds so familiar

    Didn't Obama's tool Warren "you other rich people don't pay nearly enough in taxes" Buffett loan a bunch of money to GS and get a super sweetheart deal in return?

    "III. COMBINED LIST OF GOLDIES TIED TO THE OBAMA GOVERNMENT.

    This lists compiles the names above and those in the prior diary on this. For more detail on names not annotated in this diary, see the earlier diary linked here):

    ALTMAN, ROGER.

    BERKOWITZ, HOWARD P.

    BIDEN, JOE.

    BRAINARD, LAEL.

    BUFFETT, WARREN.

    CLINTON, HILLARY.

    CRAIG, GREGORY. (revolving door)

    DONILON, THOMAS.

    DUDLEY, WILLIAM C.

    EFFRON, BLAIR W.

    ELMENDORF, DOUGLAS.

    EMANUEL, RAHM.

    FARRELL, DIANA.

    FRIEDMAN, STEPHEN.

    FROMAN, Michael.

    FUDGE, ANNE.

    FURMAN, JASON.

    GALLOGLY, MARK.

    GEITHNER, TIMOTHY.

    GENSLER, GARY.

    GEPHARDT, RICHARD (aka "DICK") A.

    GREENSTONE, MICHAEL (revolving door to Hamilton Project)

    HAMILTON PROJECT, THE

    HORMATS, ROBERT.

    KAGAN, ELENA.

    KASHKARI, NEEL.

    KORNBLUH, KAREN.

    LEW, JACOB (AKA "JACK") J.

    LIDDY, EDWARD MICHAEL.

    LIPTON, DAVID A.

    MINDICH, ERIC

    MURPHY, PHILLIP.

    NIEDERAUER, DUNCAN.

    OBAMA, BARACK H.

    ORSZAG, PETER.

    PATTERSON, MARK.

    PERRY, RICHARD.

    RATTNER, STEVE.

    REISCHAUER, ROBERT D.

    RIVLIN, ALICE.

    RUBIN, JAMES.

    RUBIN, ROBERT.

    SHAFRAN, STEVEN.

    SPERLING, GENE.

    STORCH, ADAM.

    SUMMERS, LARRY.

    THAIN, JOHN.

    TYSON, LAURA D’ANDREA."
    An Updated List of Goldman Sachs Ties to the Obama Government Including Elena Kagan | MyFDL
     
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  9. TakeAStepBack
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    TakeAStepBack Gold Member

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    But...but...but...Obama is the warrior of the middle class, he told us.

    You mean he's nothing more than a puppet for international finance octopus Goldman Sachs????

    People are fucking dumb when it comes to doing their political homework on a candidate.
     
  10. Conservative
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    Conservative Type 40

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    sounds like Chris is mad at Greg Smith for messing with the 1%-ers.
     

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