Goldman Issues Strong Sell On Obama As Firm Refuses To Vote With Its Wallet

Tyler Durden's picture

Confirming a move that will surprise exactly no one, the firm which is best known in the world for two things: i) arbitraging the gullibility of its clients, and ii) flipflopping faster than anyone when the narrative demands it, the WSJ reports that Goldman Sachs has mutated from Obama's biggest financial backer 4 years ago on Wall Street, to one of the most stingiest firms. "Employees at Goldman donated more than $1 million to Mr. Obama when he first ran for president. This election, they have given the president's campaign $136,000—less than Mr. Obama has collected from employees of the State Department. The employees have contributed nothing to the leading Democratic super PAC supporting his re-election. By contrast, Goldman employees have given Mr. Romney's campaign $900,000, plus another $900,000 to the super PAC founded to help him." In other words Goldman has just voted with their wallets, and the bottom line is "Strong Sell" with price target One Term.

From the WSJ:

When Barack Obama ran for president in 2008, no major U.S. corporation did more to finance his campaign than Goldman Sachs Group Inc.


This election, none has done more to help defeat him.


Prompted by what they call regulatory attacks on their business and personal attacks on their character, executives and employees of Goldman Sachs have largely abandoned Mr. Obama and are now the top sources of money to presidential candidate Mitt Romney and the Republican Party.


Underscoring the magnitude of the reversal, Goldman has been the No. 1 source of campaign cash to Democrats among companies during the 23 years the Center for Responsive Politics has been collecting such data.


In interviews with more than a dozen past and current Goldman executives, many said they felt betrayed by Democratic lawmakers and the White House, for years considered friendly allies. Several Goldman executives said they didn't want to speak out publicly against the president, and that their donations speak for themselves.


Jim Donovan, a banker formerly in charge of Goldman's relations with Bain & Co., the private-equity firm run by Mr. Romney, helped draw his colleagues' attention to the GOP candidate. "As a longtime friend to Mitt and Ann, I can attest that his conviction and strength on fixing the U.S. economy is compelling as are his values," said Mr. Donovan, who handles Mr. Romney's personal investments. "That is why there has been such a strong outpouring of support for Mitt from all sectors."


What is ironic is that even people as supposedly as sophisticated as Goldman employees are totally confused:

Resentments against the White House began, said senior Goldman executives, because the firm thought it would be consulted when the Obama administration began crafting regulations in response to the financial crisis. They weren't. Instead, they were surprised by a measure dubbed the Volcker rule, which would damage one of Goldman's lucrative businesses.


Goldman executives, especially those who had raised millions of dollars for Mr. Obama's election, said they were offended by the president's populist rhetoric, including his famous quip about "fat cat bankers."

The reason for the confusion is that Goldmanites of all should know that what Obama has spoken and what he has done, are two totally different things. And when it comes to what he has done, Wall Street could not be happier. As a reminder, in 2009 Wall Street bonuses were one of the biggest on record. In other words, Obama merely perpetuated the pro-Wall Street policies adopted by his predecessor.

The other reason for the confusion is that if Goldman wants to lobby for someone, it would be for the Bernanke opponent at the Fed, because the only person whose opinion matters vis-a-vis Goldman year end bonuses now is not on Pennsylvania Avenue but in the Marriner Eccles building, and the longer he implements central planning, the lower the faith and confidence in the markets, the less the participation and muppet trading, the lower bonuses for all those at 200 West. It really is as simple as that.

Ironically, the confusion is not only at Goldman. It is everywhere on Wall Street, which for once has reprised the role of the muppet in confusing just who really calls the shots.


Since the Center for Responsive Politics began tracking campaign donations by company employees in 1989, people at Goldman have given more than $22.4 million to the Democratic Party and its candidates. That is the most among employees of all companies and on par with the largest labor unions. Goldman is between the AFL-CIO, $18.5 million, and the United Auto Workers, $27.5 million—totals that include donations from both employees and the unions. The American Federation of State, County and Municipal Employees is the largest contributor to Democrats at $45 million.

In March, the company's CEO, Lloyd C. Blankfein, sent a companywide email to Goldman employees encouraging them to donate to the Goldman PAC, which doesn't give to presidential candidates. Mr. Blankfein has identified himself as a Democrat but hasn't donated much to the party since a $35,000 contribution in 2007.

Goldman president Gary D. Cohn gave $75,000 to Democrats in 2008. In this election season, he has given $35,000—75% to Republicans. Newly named Chief Financial Officer Harvey Schwartz has spent more than 90% of his donations this season on Republicans after a lifetime of Democratic giving.

And so on. For a great visualization of where the money is from from and to, click below:

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fonzannoon's picture

Goldman just upgraded Eli Lilly to "neutral" from "sell" so these guys know what they are doing....

GetZeeGold's picture



I'm holding out for the Muppett report.....that's never wrong.


kaiserhoff's picture

"most stingiest?"  WTF?  Ilene needs a proof-reader, and a leash.

caconhma's picture

Zionists who own and run FED, WallStreet, major banks, etc., want Obama out. Romney is their man for today.

But Obama is the President right now and they must be very careful not to provoke Obama, his justice department, and his foot-solders.

The best they can do is to manipulate the market down and blame it on Obama.


Middle_Finger_Market's picture

GS = FULL OF SHIT. Almost as bad as the BLS and FED. The muppets turn to GS like their saviour...I mean these guys are insolvent. Lloyd GS is insolvent and a failed institute. FAILED INSTITUTE.

Dr. Engali's picture

Yes they know exactly what they are doing. When they upgrade it to buy you know they have accumulated enough to dump on the muppets.

youngman's picture

Obama will make it up with billions of under the table donations from know the ones that have no records and do not have to be reported...its so simple its stupid...

duo's picture

His biggest donor so far is the University of California.  WTF?  And they have the nerve to call up alumni (UCLA '83) and ask for money?

Talk about funneling taxpayer money to his re-election.

AynRandFan's picture

Obama's biggest contributor by far is SEIU, the public sector employee union.

a growing concern's picture

That's all you need to know about who's going to win the election.

HelluvaEngineer's picture

Things are looking really weird.  It appears that the fix is in, with a miraculous Romney win, with war and financial collapse to follow.  Absolutely none of this is priced in - perhaps unloading positions is slower than expected or even impossible.

j0nx's picture

Bibi all but holding hands with Romney after Obama refused to meet with him should have told you all you needed to know about who will win this race. I'm already putting my family security plans in order since I live in a 75% low income section 8 black neighborhood now after half the homes went into foreclosure in 2007-2010 and were bought for 1/3 their value and then rented to these lowbrow cretins. I am taking election day and the day after off to be there in case I need to load up the Jeep with the wife and kid and my gear and get the fuck outa Dodge quick if the natives here get restless after their saviour loses the election. I suggest others in the same situation take their own precautions if history is any guide.

Ident 7777 economy's picture






"...  Romney win, with war and financial collapse to follow.  ..."



Engineering FAIL; On the contrary, salvation (figuratively) is just around the corner ...


MassDecep's picture

Why was Obama lackluster at the Debate?


1. He was told by his handlers he wouldn't be re-elected? 

2. He was told he would be re-elected, so the debate didn't matter.  

Who controls and counts the votes? They are in fact electrons in cyberspace controlled by the owners. I would be very leery of any moneys flowing to anyone at this point. It is literally fractions of pennies to them



GeezerGeek's picture

You omitted the favorite of conspiracy theory terrorists these days: Either martial law before the election or between the election and the inaguration.

We don't need no stinking election! (It's not like anything really changes, does it?)

dirtbagger's picture

This seems a bit short sighted on Goldman's behalf.  They received an excellent ROI on their 2008 Obama campaign contributions.  Hard to see that the Mitt can be any more generous to Wall Street.   The R's have the reputation of being the lackeys of corporations and will probably be forced to actually have a prosecution or two from the DOJ.   The D,s got a free pass on their lack of scrutiny of the FIRE sector. 

Radical Marijuana's picture

Oh, Oh!!! Yeah, since we live in a fake democratic republic, that is actually a fascist plutocracy, the banksters are the main string pullers! The biggest banksters are SWITCHING to support Romney! That makes it possible to believe Romney will win the election. That means that things will continue to get WAY WORSE. Obama 2, would have been Emperor Obama, which would have been VERY BAD! However, Romney One is sure to be WORSE! Thus, the only consistent thing will become that each new President manages to break records, and be even worse than the previous one was! After all, the ONLY way the next President could keep the established pyramid systems going would be to double down on the total USA debts AGAIN!

Dr. Richard Head's picture

Why would the theft titans not want Obama back in office?  Obama was very friendly with these firms along with Benny giving as much to keep these ponzi institutions sucking the blood out of each and every one of us.  Romney wmust have promised the first born of every American or something.

otto skorzeny's picture

hos are a fickle bunch- another pimp has promised them a bigger cut

Woodyg's picture

On the flip side of that anyone think Obummer will fire those 25+ ex- Goldman Sachs employees who went to work for the Obama white house economic team?

Probably not - because the one thing the Oilybomber cares about more than even the white house is his $250,000 paycheck for a shitty 1/2 hour speech.

Clinton has made well over $100 million off those tough days at the office.

RiverRoad's picture

Odd that I didn't hear George Soros clapping after the debate....

otto skorzeny's picture

I sense a disturbance in the force.

a growing concern's picture if millions in campaign donations to Obama were suddenly withheld and given to his opponent.  I fear something terrible has happened.

eigenvalue's picture

Is it possible that Obummer got defeated in the coming election? Romney doesn't seem to be a credible challenger. 

a growing concern's picture

If the bastards in charge at all these "banks" and "gambling institutions" decree it, so shall it be done.  And this would indicate they've decreed it.


Cue more desperate political gimmicks by Obama in 3...2...1...

HelluvaEngineer's picture

The tip off was the media simultaneously piling on Obama after the debate.  They never think for themselves so they were obviously told what to say by those who have already rigged the election.  Reminds me of the blog post from Ann Barnhardt.



francis_sawyer's picture

No ~ the 'tip off(s)' have been happening for months now... First ~ with Romney (allegedly) attending Bilderberg, the HUGE financial support for the Romney campaign from Sheldon Adelson, & Romney's visit to Israel to kiss Netanyahu's ass...

But don't listen to me ~ I'm just full of a bunch of Heebie Jeebie crap 24/7 (& none of it could possibly have any inter connectiveness ~ in fact, these are probably all high likelood event combinations, like, you know, the ridiculously skewed representation in banking & broadcasting industries)... Happens all the time...

FWIW ~ I still don't think it [elections] is a done deal... I believe there is infighting going on... & doesn't Soros basically own DIEBOLD?...

GetZeeGold's picture



Reminds me of the blog post from Ann Barnhardt.


I don't screw with Ann Barnhardt......that pink AR15 shoots real bullets.


GeezerGeek's picture

The MSM had to retain some degree of credibility, so they had no choice but to decry Obama's performance. The truth is, he never has been particularly good when not scripted and reading from a teleprompter. His is really a rather mundane degree of intelligence, far inferior to some of the intellect displayed on ZH. (And, to be fair, far superior to some of the intellect displayed on ZH.)

Lefties like Chris Matthews, Bill Maher and David Letterman did not change their ideologies, but they had to acknowledge the situation lest no one ever listen to them again.

francis_sawyer's picture

If you play on that level, you're TOLD what to do & say (by who has placed you there)... There's no other viable explanation for some of the stupid things these people say & do (nobody could possibly be that stupid)... Option #2 is to "grow a pair" (which will get you a bullet in your head)... That's the beginning & end of it...

Radical Marijuana's picture

Tragically, you are right ... the shadow government assassinates politicians who will not cooperate, when necessary.

Woodyg's picture

You're confusing America for a democracy - that said why put Romney in ere when Obama is willing to do anythng the banksters want -

According to Richard Wolff Obama himself personally killed and defanged the volker rule - he did have summers on his side of course......

Plus Obama silences the left into accepting things that if a repub did it the dembots would be up in arms.

I'm willing to bettered a heck of bidding war by the Romney and Obama teams promising the sky to the bankster fucks.

GeezerGeek's picture

I believe we need to consider the possibility that 'the banksters' are not the only power players in the world, and perhaps they are worried that Obama may be turning elsewhere for support. Could Obama be looking to the Chinese for surreptitious support? That appears to be a major source of illegitimate campaing funding, according to some reports. What about the House of Saud? They've been implicated in funding his earlier years. All sorts of possibilities exist, and Obama may not be responding to the puppet strings the way 'the banksters' want.

I'm with you on the concept of Obama being able to push things the left would otherwise hate. That's why we have the phrase Only Nixon Could Go to China. Some people laud such actions, proclaiming the benefits of compromise and 'working together' with one's ideological enemies. Unlike those, I reject the soundness of compromising on core beliefs.

Manthong's picture

They will get who they want.

I think the fix is in for a new clean, well-spoken white guy who will push through a can kicker that will require the same insane borrowing and spending the old clean, well-spoken black guy did but could not get away with doing again.

Ident 7777 economy's picture






"Is it possible that Obummer got defeated in the coming election? Romney doesn't seem to be a credible challenger. "


Impudently stupid post AND poster.



Vergeltung's picture

ah, some good news this morning.  :-)


caimen garou's picture

do not pay attention to the fool behind the curtian ie goldman switch a roo sachs!

Robslob's picture


1) Goldman lower class smegma aren't donating but what about Lloyd and his gang of elites?

2) Too bad my taxes aren't enough to get my CONgressman to vote the way I want!


Pathetic state of affairs right here in the whorehouse called American Politics.

Lost Wages's picture

If I were running to be re-elected and the banks stopped donating to me, I'd start throwing their CEOs in jail tomorrow. You're not gonna be my friend anymore? Then maybe I'll finally ask ol' Eric Holder to take you down. We have the evidence after all, just not the will to prosecute.

At least, that is what someone with balls would do. Obama's obviously a eunuch for rich white men's pleasure.

Dr. Engali's picture

Goldman knows that regardless of who gets elected the next president is going to be a money printer too. They have no choice,so even if Mittens did fire Ben (which I doubt he will) the next central banker won't be much different, maybe a smoother liar with no quivering lip.

Tyler Durden's picture

If Mitt wins, next Fed head will be Bill Dudley, formerly of Goldman Sachs.

a growing concern's picture

Pardon my ignorance, but what would be Dudley's game plan?  Where does he stand on the debase the dollar to infinity scale?

malikai's picture

I wouldn't doubt it for one second. But why would he fire benocide?

HelluvaEngineer's picture

To give the illusion that policy is changing.  It will probably be a terrific buying opportunity for gold, silver.

Alternately, another collapse may be planned for early next year.  Bernanke would be a terrific person to take the blame.  Replace him, then do more of the same.

malikai's picture

It makes sense, and sounds like the more likely thing to happen.

I'm just stuck on the notion that mittens will drop all his promises like they always do.

francis_sawyer's picture

Not the most important one... To hasten the start of WW3... Let's see ~ WW3 starts in conjunction with civil war & race riots in the US... How lovely... (at that point, it would make who the next Fed chair a relatively moot topic by comparison)...

Dr. Engali's picture

I should have seen that one coming....a man who likes the printing press even more than Ben.

mvsjcl's picture

Darn! I had him slated for Treasury. Fortunately, I used a pencil, so easy enough to switch with another useless banker.

falak pema's picture

Dudley Moore is a much better choice. He even has the decency to be dead and buried; like the economy.