Greg Smith, a Goldman Executive, resigned from Goldman Sachs. He wrote a scathing editorial in the New York Times, describing a sick corporate culture at Goldman. According to Mr. Smith, in the past Goldman did show interest in providing services to its clients, designed to make them richer. But in recent years, according to Smith, Goldman's corporate culture has become a den of con artists. Essentially, their focus is on how much money they can fleece off their clients, not in helping their clients make money on their investments.
The government has recently attempted to address this. As biggest part of pay for bankers is commissions and bonuses, new government regulations have required bigger base salaries. Perhaps more needs to be done on this front, because if bankers had more stability in their income, perhaps they wouldn't feel the need to "fleece" their customers.
Goldman Chairman Lloyd C. Blankfein denied Smith's allegations in a rebuttal published by Bloomberg Businessweek. But things must have been pretty bad for Blankfein to even both acknowledging, must less rebutting, Smith's editorial in the New York Times.
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