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Ex-Goldman Exec Comes Clean On How A "Toxic And Destructive" Goldman "Rips Its Clients Off"

Tyler Durden's picture




 

Stop us when this confession from Greg Smith, a now former executive director and head of the Goldman's United States equity derivatives business in Europe, the Middle East and Africa, sounds exactly like everything we have said about the firm over the past 3+ years (and why we just can't wait for the next trading "recommendation" from Tom Stolper).

Excerpts from the NYT. Highlights ours.

Why I Am Leaving Goldman Sachs

Today is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — 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.

To put the problem in the simplest terms, the interests of the client continue to be sidelined in the way the firm operates and thinks about making money. Goldman Sachs is one of the world’s largest and most important investment banks and it is too integral to global finance to continue to act this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for.

It might sound surprising to a skeptical public, but culture was always a vital part of Goldman Sachs’s success. It revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients. The culture was the secret sauce that made this place great and allowed us to earn our clients’ trust for 143 years. It wasn’t just about making money; this alone will not sustain a firm for so long. It had something to do with pride and belief in the organization. I am sad to say that I look around today and see virtually no trace of the culture that made me love working for this firm for many years. I no longer have the pride, or the belief.

...

I knew it was time to leave when I realized I could no longer look students in the eye and tell them what a great place this was to work.

When the history books are written about Goldman Sachs, they may reflect that the current chief executive officer, Lloyd C. Blankfein, and the president, Gary D. Cohn, lost hold of the firm’s culture on their watch. I truly believe that this decline in the firm’s moral fiber represents the single most serious threat to its long-run survival.

...

How did we get here? The firm changed the way it thought about leadership. Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and are not currently an ax murderer) you will be promoted into a position of influence.

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.

Today, many of these leaders display a Goldman Sachs culture quotient of exactly zero percent. I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them. If you were an alien from Mars and sat in on one of these meetings, you would believe that a client’s success or progress was not part of the thought process at all.

It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God’s work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact.

 

....

And so on - the picture is more or less clear to anyone who has read our endless rants against the tentacular financial monopolist of scale. Also, maybe it is time for all those media "critics" to offer an apology to Matt Taibbi?

While this comes nowehere close to redeeming the massive ills the firms and its peers have inflicted upon society, this kind of self-reflection is critical, not only at Goldman, but everywhere else, if the world has some chance of stopping before it slides right over the edge.

We leave readers with some appropriate sketches on this now closed matter courtesy of the inhouse artistic genius, William Banzai.

 

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Wed, 03/14/2012 - 07:37 | 2253338 markmotive
markmotive's picture

Testify.

Wed, 03/14/2012 - 07:45 | 2253359 AN0NYM0US
AN0NYM0US's picture

"resigning or retiring" the words Disingenuous Asshole comes to mind as I read this, unless of course he will be returning some of the tens of millions he has reaped from the bonus pool (clients)


Wed, 03/14/2012 - 08:00 | 2253393 GetZeeGold
GetZeeGold's picture

 

 

They might rip everyone off.....but they do dress nicely. You have to give them that.

 

Wed, 03/14/2012 - 08:06 | 2253415 Chris Jusset
Chris Jusset's picture

"Toxic and destructive" is precisely the correct phrase to describe Goldman.

Wed, 03/14/2012 - 08:39 | 2253495 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

You can't trust anyone that doesn't eat pork!

Wed, 03/14/2012 - 09:04 | 2253555 Leopold B. Scotch
Leopold B. Scotch's picture

This screwing began day one when certain firms were granted the right to legally counterfeit via the fractional reserve printing system backed by the Federal Reserve master printer.  Loan all dollars into existence and make 'em all your slaves.

Goldman may be particularly rotten these days, but let's not lick the hand of any debt master who does so with such secretive and ugly methods.  This has been a screwing of the people day one since the days of Jekyll Island.

Also, Goldman clients may be blind and stupid, but they at least are duping themselves.  I don't weep for them too much.

The same should be said for UST holders.  You buy an investment that pays you back with your own tax payments and/or in depreciated dollars?  Be my guest.

Wed, 03/14/2012 - 09:31 | 2253674 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The world is a vampire..........  squid! I just left a place that was similar to what this former squid author stated. The money was significantly less, but the toxic environment persisted. Once places go to shit there is no going back. Morons ruin the organization from the top down.

Being in an executive chair, this little apology means nothing since it originated with you.

Wed, 03/14/2012 - 09:51 | 2253751 narapoiddyslexia
narapoiddyslexia's picture

This means Dudley has to leave the NY Fed. After all, The Dudster was a partner and managing director at Goldman, Sachs & Company and served as the firm's chief U.S. economist for a decade. 

The Dudster must resign! He is toxic and destructive!

Wed, 03/14/2012 - 10:14 | 2253893 Bananamerican
Bananamerican's picture

"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."

"Heaven, I need a Hug"

 

I'm just bein' real, you know
I'm like the sun, I'm tryin' to shine on everybody
You know what I'm sayin'
But it's like situation after situation, you know
So I write about it to get it off my chest, you heard

See, I get lost sometimes, don't understand this place
Look in the mirror sometimes and see a troubled face
And then my tears roll down and hit the sink
Then I hold my head up high, I hope the Man upstairs can hear my cry

I'm always tryin' to help people out
And it's them same people tryin' to take food out my mouth

(Fo' real tho') It seems like the more money I make
(Fo' real tho') The more drama y'all try to create
(Fo' real tho') And through I try to move into the positive
(Fo' real tho') The more y'all don't wanna let me live

When will you realize that I don't owe you nothin'
Need to get up off your butt and go get your own somethin'
I'm pullin' on my hair to keep from snappin' off
Fools ride up in my camp and be actin' off
Somebody out there please pray what I'm talkin' 'bout
Still young tryin' to figure it out

Heaven, I need a hug
Is there anybody out there willin' to embrace a thug
Feelin' like a change of heart
And all I really need is a sign or a word from God
So shower down on me, wet me with your love (or urine, your call)
I need you to take me and lift me up, oh, yeah

Wed, 03/14/2012 - 10:46 | 2254110 DaveyJones
DaveyJones's picture

How exactly does an ex-Goldman come clean?  Amicin? Garamycin?

Wed, 03/14/2012 - 11:24 | 2254337 francis_sawyer
francis_sawyer's picture

LYE

Wed, 03/14/2012 - 12:11 | 2254498 DaveyJones
DaveyJones's picture

They were already using that word but kept misspelling it

Wed, 03/14/2012 - 10:59 | 2254118 redpill
redpill's picture

Did it never occur to this guy that Goldman was like this all along, and young naive kids out of Stanford with dreams of being "the man" simply willed themselves not to see it, and it took 10 years for the rot to finally become undeniable? 

Taking the most optimistic view of humanity would mean that this squiddy had some tiny thread of morality left in his contorted soul and decided to "come clean."  More likely this is a Machiavellian play to protect his own ass so he doesn't wind up dead in a hottub. He probably crossed the head vamp squid himself, and figured this sort of public tirade would serve as a reason not to suddenly suffer "death from natural causes" while walking in his neighborhood since that would look just a liiiiittle too coincidental for squiddy comfort.

Even so, vampire squids have notoriously long memories.  If I were this fellow I'd be careful which private jet I chartered for my annual vacation to St. Barts.

Wed, 03/14/2012 - 11:57 | 2254453 eatthebanksters
eatthebanksters's picture

There was a time when the Goldman Sachs brand was synonomous with inegrity...It was years ago when a guy named Whitehead was at the helm.  There is a story about a time where Goldman clients lost $60 million on a bad deal (Goldman was only worth $30 million at the time) and Whitehead and the rest of the GS group made the clients whole, even though it took time.  Clients come back to do business with advisors like that.  Blankfein was the top of his class at Harvard law school and intellectually he can rationalize any despicable behavior...just like he has done if front of Congress. Nowadays GS is synonomous with organized crime because thats what they appear to do; run a criminal racket.  When you have the political clout to change laws that in the past protected the client and now allows you to legally steal from them, then things have gone to far.  I doubt their world will change much. in a world driven by resuts they have the scale and wealth to buy the info they need to be an effective market maker.  With zillions of Bernanke's dolars floating around and few options with regards to firms wise the size and scale to invest, the corrupt machine of GS will thrive in this environment. If I were a fund manager I would use the likes of Morgan Stanley, BlackRock or Schwab...the leadership of those firms recognizes that the customer is the focus of their service.  Fuck the likes of GS and JPM and the dirtbags that rn them.

Wed, 03/14/2012 - 12:05 | 2254519 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

redpill,

"Even so, vampire squids have notoriously long memories."

No Shit!

Thinking back to 2008 the first one to go down was Bear Stearns. Bear was the only one that failed to "heed the call" in the bail-out of LTCM a decade earlier.

Wed, 03/14/2012 - 09:51 | 2253752 narapoiddyslexia
narapoiddyslexia's picture

dup. you'd think I'd know better

Wed, 03/14/2012 - 09:02 | 2253563 trav7777
trav7777's picture

I am thinking I should have stayed with MS in the early 90s instead of going to law school...then I could have ripped everyone off too.  Oh wait, law, lol...win/win for me!!

Wed, 03/14/2012 - 09:05 | 2253574 Leopold B. Scotch
Leopold B. Scotch's picture

Hard to believe lawyers are finding themselves playing second-fiddle to a bigger parasite class ala Goldman.

Lawyers and bankers, though.. hated for good reason, even if there are a few good ones among them.

Wed, 03/14/2012 - 09:58 | 2253798 narapoiddyslexia
narapoiddyslexia's picture

My theory - lawyers are becoming better people all the time, as the financial sector sucks more and more of the available money out of the corporate sector, there is less and less left for lawyers. As lawyers make less and less money, the vultures leave the legal profession or don't go into it to start with, and thus the average morality of the legal profession improves. Thus, thanks to Goldman Sachs and its ilk, lawyers become better people, as a class.

Wed, 03/14/2012 - 10:30 | 2254002 Gold Dog
Gold Dog's picture

Lawyers...it's the same old story, 98% of them ruining it for the rest of them!

Wed, 03/14/2012 - 10:13 | 2253888 Mr Kurtz
Mr Kurtz's picture

Why does a hearse horse snicker,

Hauling a lawyer away?

http://www.americanpoems.com/poets/carlsandburg/12950

Wed, 03/14/2012 - 11:56 | 2254469 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

LBS,

If you add-up both of them they are still killing the host (us) we are still screwed, and that's the only screw missing from the chart.

Wed, 03/14/2012 - 13:24 | 2254964 MeelionDollerBogus
MeelionDollerBogus's picture

Ya, there ought to be a bankster/lawyer forex-style trading vehicle.

You know when lawyers are considered the good end of the trade ... WE'RE FUCKED

Wed, 03/14/2012 - 09:37 | 2253684 Pseudo Anonym
Pseudo Anonym's picture

shocking that I was first to give you a tic up. I thought there would've been tons of that on this site.  Whether you said it with or w/o sarc, I remembered where I was, where I am and what and how I did it.  But I guess you had to be there ...

Wed, 03/14/2012 - 10:23 | 2253962 William113
William113's picture

I hate you but that was funny.

Wed, 03/14/2012 - 19:40 | 2256258 CoolBeans
CoolBeans's picture

BACON

Wed, 03/14/2012 - 10:30 | 2254007 lostintheflood
lostintheflood's picture

and they own our country...

Wed, 03/14/2012 - 08:08 | 2253418 markmotive
markmotive's picture

Wolves in sheep's clothing.....this is nothing new for the banking industry. This guy's experience is probably an anomoly.

 

Geralde Celente on the global banking kleptocracy:

http://www.planbeconomics.com/2012/02/28/gerald-celente-on-the-global-ba...

Wed, 03/14/2012 - 10:30 | 2254001 cranky-old-geezer
cranky-old-geezer's picture

 

 

99% of Americans have the same vulture mentality as GS.   They would abandon every principle they have to make a buck.

Money is their god, just like GS, no difference.

It's not just GS.  It's not just the financial industry.  It's not just our corrupt leaders.

It's 99% of Americans too, corrupt to the core.

That's why America isn't worth saving, and won't be saved.

Wed, 03/14/2012 - 09:15 | 2253617 Rudolf Havenstein
Rudolf Havenstein's picture

Jews ripping off goyim........Shocking!

Wed, 03/14/2012 - 09:47 | 2253732 resurger
resurger's picture

nothing on Bloomberg!

 

Wed, 03/14/2012 - 10:26 | 2253983 Hugh_Jorgan
Hugh_Jorgan's picture

Take that crap elsewhere, won't you? A greedy dirtbag is a greedy dirtbag, plain and simple. Bigotry is less than helpful when it is directed at Blacks, Jews, White Male Christians, Non-Jews or whoever. Here's an idea; instead of speaking in broad generalities, let's focus on the individual who IS responsible for their own flaws. Maybe you could start by analyzing and fixing yourself, that should keep you busy for awhile...

Wed, 03/14/2012 - 11:12 | 2254263 orangedrinkandchips
orangedrinkandchips's picture

I agree Hugh, if he has hate in his heart...let it out (white power!)....lol...from Chapelle show.

I am a jew and while i agree with racism, it's under one condition: that everyone is offended! it's not funny til everyone is offended.

I do have to say these guys- humans really-  above being jewish, dyslexic, ugly, greedy, vegan etc. are evil and they do give jews a bad name. I cant help but think people like the top ranks at GS were responsible for ww2. Sad, but true. 

It sucks...but your right....a dirt bag is just that....no matter what else...dirt bag is a trump card

Wed, 03/14/2012 - 11:22 | 2254293 Yardfarmer
Yardfarmer's picture

it's OK, the goy donkeys can bray all they want. they are unintelligent beasts needing bridle and bit. http://www.thepeoplesvoice.org/TPV3/Voices.php/2010/10/18/major-rabbi-sa...

Wed, 03/14/2012 - 13:28 | 2254980 MeelionDollerBogus
MeelionDollerBogus's picture

Honestly, I'll admit some Jews are ripping off some non-Jews. But I can't honestly say that's the real big picture. Look at the central bank players from Russia, China, Japan.... Jews? You think so? I don't think so. And look at other kinds of manipulation. Look at how Japan is going to revise the safe-limit exposure of radiation so that no evacuations are mandatory. How's that for manipulation? Cost you more than a retirement fund, that's for sure. Again, not Jews vs Goyim there & that's literally life & death. Just saying, some perspective is worth keeping.

Wed, 03/14/2012 - 10:20 | 2253938 Downtoolong
Downtoolong's picture

Pirates of pinstripes.

Wed, 03/14/2012 - 10:53 | 2254150 brooklynlou
brooklynlou's picture

So did the Nazi's. The SS rounded up all the best tailors is Europe

Wed, 03/14/2012 - 11:20 | 2254315 Dermasolarapate...
Dermasolarapaterraphatrima's picture

"Clients" don't get ripped off. It's more likely the clients of funds that use GS who get the ultimate shaft. The funds that use GS get fat commissions like brokers anywehre. This is one reason Bogle (from Vanguard) says to bypass most funds and buy the ETFs or the commodity itself or, as an alternative, a low cost fund.

 

After this artilce and MF Global (and its clone) and advice from Bogle you think people might wise up?

Wed, 03/14/2012 - 08:33 | 2253481 Ponzi Unit
Ponzi Unit's picture

Irrelevant, Anonymous. This is a bombshell of a story. GS insider reveals true culture. Your observation is sophomoric.

Wed, 03/14/2012 - 09:42 | 2253710 AN0NYM0US
AN0NYM0US's picture

Well said Ponz, I have a bridge you might be interested in purchasing

Wed, 03/14/2012 - 11:33 | 2254376 nope-1004
nope-1004's picture

Is Stolper recommending bridges now?  Leave your cubicle and go ask.......

Wed, 03/14/2012 - 18:32 | 2256052 UP Forester
UP Forester's picture

I think he had a "buy" call on the I-35 bridge, and his daddy had a "buy" call on the Tacoma Narrows....

Wed, 03/14/2012 - 11:11 | 2254258 IrritableBowels
IrritableBowels's picture

As are most of them.

Wed, 03/14/2012 - 08:40 | 2253497 Terminus C
Terminus C's picture

This is a Goldman PR piece.  It says the following in support of Goldman:

-The firm is critical to the survival of global finance

-for 134 years Goldman has been about helping its clients

-there was a culture of teamwork and humanity

 

The only thing it says is bad about Goldman is that it has a few bad apples (Lloyd and co.)

Essentially the message is: The system is good, if we'd just drop a few bad apples

Now they will "fight" (Goldman's response) which will distract the public from the real systemic issues and have them (the public) focus on a trivial catfight that makes great headlines.

As propaganda goes it is well done, otherwise, it is pure bullshit.

Wed, 03/14/2012 - 08:49 | 2253520 blindfaith
blindfaith's picture

Agree.

 

If 'we are doing Gods work' didn't piss off the uber rightwing super rich clients, then everyone got what they deserved.  What god was the question no one asked.

So the guy has 20/20 hindsight.  Then how come Consumer Reports in August 2005 warned about all this and told it's readers to stay clear.

All this'gee,I didn't see it' is pure 'defendable in court' bullshit.

Wed, 03/14/2012 - 09:11 | 2253587 Leopold B. Scotch
Leopold B. Scotch's picture

Consumer Reports?  Christ.  Maybe, but people have plainly warned about this rigged bullshit from day one:

"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."
-Charles A. Lindbergh, Sr. , 1913

"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning."
-Henry Ford

"The Federal Reserve banks are one of the most corrupt institutions the world has ever seen. There is not a man within the sound of my voice who does not know that this nation is run by the International bankers."
-Congressman Louis T. McFadden


Without the Fed, Goldmand and all these other shysters TBTF would be rendered mere mortals. Instead, they vacuum up all the nations wealth and economic seed-corn, raping the nation of it's economic viability. Yes - VAMPIRE SQUIDS! Goldman may be the best, but they're all the same.

Wed, 03/14/2012 - 10:52 | 2254147 DaveyJones
DaveyJones's picture

your posts are something else this morning.

Wed, 03/14/2012 - 09:09 | 2253591 GetZeeGold
GetZeeGold's picture

 

 

That almost makes sense.......so basically GS is just sticking up the the little guy.

 

GS is.......dare I say it.........AWESOME!!!!!!

Wed, 03/14/2012 - 12:05 | 2254521 Justawhoaman
Justawhoaman's picture

You are an idiot if you think there are political sides in this. The pukes are all on the same side, THEIR SIDE (insider), and all the vitriol between conservatives and progressives is pure theatre.

http://dunwalke.com/non_flash.htm

Wed, 03/14/2012 - 09:00 | 2253549 kridkrid
kridkrid's picture

Fantastic observations.  That is just as valid as any other interpretation.  Even if the piece is actually sincerely written, this is how it will be spun.  

Wed, 03/14/2012 - 10:01 | 2253817 crawldaddy
crawldaddy's picture

its not a valid observation at all, its a stupid observation.

Wed, 03/14/2012 - 11:57 | 2254478 Terminus C
Terminus C's picture

Any more ad hominem logical falicies you'd like to throw out there?  Or would you care to address the point I made?

Wed, 03/14/2012 - 10:01 | 2253809 crawldaddy
crawldaddy's picture

wow, doesnt say that at all.PR piece?  my god really.  The piece is about how the company puts its own profit above that of its customers.  Its about how the culture is so corrupt it rewards the wrong people. It even talks about the petty name calling of its customers.

 

This is so far from a PR piece that it is laughable you think otherwise.

 

This is not some jedi fucking mind trick, its about someone leaving a shitty company and spilling the beans.

Wed, 03/14/2012 - 10:34 | 2253876 mendigo
mendigo's picture

Pretty funny - Goldman announces they suck and these guys want to dispute it.

I am thinking more fiber is needed. 

You are the True contrarian... or maybe sometimes a cigar is just a cigar.

Wed, 03/14/2012 - 10:32 | 2254025 Rainman
Rainman's picture

Five other members of Squid High Command have departed in the past week. One is an anamoly, five is a trend.

http://www.thehealersjournal.com/2012/03/08/world-resignations-list-updated-march-5th-march-7th-2012/

 

Wed, 03/14/2012 - 10:53 | 2254154 mendigo
mendigo's picture

Perhaps global domination isn't the challenge that it used to be.

Wed, 03/14/2012 - 11:55 | 2254464 Terminus C
Terminus C's picture

The letter clearly stated that Goldman was critical to the functioning of finance.  In other words reiteratiing the belief that it is TBTF.  If you can't read between the lines and understand media manipulation it is not my fault.  I can only point out what I see, and that is what i see.  Your ad hominem attack on me does not make a good argument.  You did not address my points, you merely parroted the strawmen of the article as fact.

Critical thinking is your friend.

Wed, 03/14/2012 - 13:54 | 2255085 MeelionDollerBogus
MeelionDollerBogus's picture

How about the possibility that happy little Greg there actually believes it? Maybe he believes TBTF is not a bad thing, maybe then he believes GS as TBTF is not a bad thing. His beliefs certainly will color everything he says/writes without necessarily implying we ought to believe he's right. Do you think he's wilfully intending to deceive people even as he's leaving GS? Would that help him get another job like it?

Wed, 03/14/2012 - 12:07 | 2254529 Justawhoaman
Justawhoaman's picture

I agree. Hope he's prepared for an audit or ten...

Wed, 03/14/2012 - 08:41 | 2253504 ZippyBananaPants
ZippyBananaPants's picture

Someone needs to slap Joe Kernan in the nut sac!! What a doush

Wed, 03/14/2012 - 08:52 | 2253528 blindfaith
blindfaith's picture

 

 

Narcissis in the first degree.  Haven't seen CNBC for 10 years, but I bet 'Mr look-at-my -hair" still thinks he is smarter than Bill Flenkenstine.

Wed, 03/14/2012 - 11:31 | 2254363 francis_sawyer
francis_sawyer's picture

Joe Kernen has a nut sac?

Wed, 03/14/2012 - 08:56 | 2253539 rbg81
rbg81's picture

Whenever someone burns his bridges like this, you have to wonder about the real motivation.  Is it really about integrity or is it a hissy fit because he didn't get the promotion or bonus he wanted.  Or maybe he wants to drive his clients to his new job (wherever that may be).  I have no doubt that ALL investment firms exhibit shades of this behavior.

Wed, 03/14/2012 - 09:21 | 2253645 Imminent Crucible
Imminent Crucible's picture

He wants to be out before the litigations turn into prosecutions.

Wed, 03/14/2012 - 09:37 | 2253693 kridkrid
kridkrid's picture

wishful thinking, on your part.  

Wed, 03/14/2012 - 10:56 | 2254171 DaveyJones
DaveyJones's picture

litigations to lynchings

Wed, 03/14/2012 - 11:00 | 2254191 DeadFred
DeadFred's picture

What makes you think Holder is resigning?

Wed, 03/14/2012 - 10:18 | 2253925 stirners_ghost
stirners_ghost's picture

After a $10M bonus or two, it doesn't really matter if you can never go back again. Plus, there's a book in the works, no doubt.

Wed, 03/14/2012 - 10:21 | 2253946 Hard1
Hard1's picture

Agree, easy to come forward and bash your employer when you have no financial worries left in life

Wed, 03/14/2012 - 23:39 | 2256718 memyselfiu
memyselfiu's picture

Good point- yet another example of the fact that money=freedom in america.

Wed, 03/14/2012 - 10:33 | 2254030 Fred Garvin
Fred Garvin's picture

Thank you for the comment Goldman Robot, er..ANONYMOUS. The Astroturfing begins...http://en.wikipedia.org/wiki/Astroturfing

Wed, 03/14/2012 - 11:37 | 2254392 el Gallinazo
el Gallinazo's picture

What an asshole!  It's all Lord Blankfein's fault.  They were doing God's work under Hankenstein, Ruben, and Corzine as we drift back through the corridors of their illustrious history.  I almost threw up and had to stop halfway through.  If this were not an international blog, I would recommend to the Tylers that they avoid  posting shit like this around mealtimes, and at least issue a warning about blowing a meal.  In today's hard times, some of us can't afford the loss of nutrition.

Wed, 03/14/2012 - 07:48 | 2253363 Comay Mierda
Comay Mierda's picture

this guy is joining the MASSIVE wave of bank exec's resigning

http://www.abovetopsecret.com/forum/thread818445/pg1

Theories:

"1) Rats leaving a sinking ship: Either a big economic collapse is about to happen and they are leaving before it does, or a false-flag is coming our way.

2) The "good guys" are finally scaring the "bad guys" away: these resignations have been predicted by many geo-political analysts such as Benjamin Fulford, LaRouche, David Wilcock, and others.

 3) Nothing to see here, move along: I can't believe this theory anymore"

Wed, 03/14/2012 - 07:48 | 2253369 Tyler Durden
Tyler Durden's picture

And all those "massive" resignations are promptly filled by a "massive" wave of banker promotions. 

Wed, 03/14/2012 - 08:06 | 2253414 GetZeeGold
GetZeeGold's picture

 

 

Yeah but when you resign from GS you get your pick of a Whitehouse or a SEC postion.

If you do it right you become a Senator and then a Governer. You then rip a larger class of people....and then you move to France.

I'm not sure what you do after that......I guess watch and find out.

 

Wed, 03/14/2012 - 08:12 | 2253428 Wakanda
Wakanda's picture

After that comes the storming of the Bastille.  Non?

Wed, 03/14/2012 - 09:48 | 2253737 BobPaulson
BobPaulson's picture

Non. Il faut qu'il y ait du faim d'abord.

With sufficient Victory Gin and Victory Cigarettes (or reality TV and wal-mart Kraft Dinner, Alpo) and regular election pantomimes, the revolution has been indefinitely postponed.

The pigmen know how effective their brainwashing is. They are only afriad of the few who have taken the red pill. That's why they had "Internet Hacking" a top concern at Davos this year. If you told them a sniper was after them they would worry. Pitchforks marching up Broadway? Not so much.

 

 

 

Wed, 03/14/2012 - 10:31 | 2254017 Wakanda
Wakanda's picture

Consternant.

Wed, 03/14/2012 - 08:48 | 2253518 Manbarepig
Manbarepig's picture

Yeah but when you resign from GS you get your pick of a Whitehouse or a SEC postion.

 

Only if you were a good boy and kept your mouth shut and smiled while all of the above happened.

Wed, 03/14/2012 - 08:56 | 2253536 resurger
resurger's picture

exactly! i was about to say that

Wed, 03/14/2012 - 10:07 | 2253868 JPM Hater001
JPM Hater001's picture

"I'm not sure what you do after that......I guess watch and find out."

You get a show on CNBC.

Wed, 03/14/2012 - 10:44 | 2254103 Instant Wealth
Instant Wealth's picture

Huh, Senator ... lame. In Europe you become President of a South European nation.

Wed, 03/14/2012 - 16:03 | 2254186 DaveyJones
DaveyJones's picture

you ghostwrite your false biography

Wed, 03/14/2012 - 08:19 | 2253441 Sudden Debt
Sudden Debt's picture

In your last picture you show the ways goldman screws it clients.

But is there also a type of list of nuts/clients?

Wed, 03/14/2012 - 09:15 | 2253624 uno
uno's picture

client nuts would be NSFW

Wed, 03/14/2012 - 09:26 | 2253661 malikai
malikai's picture

If you do business with Goldman, you are a nut.

Wed, 03/14/2012 - 08:45 | 2253510 battle axe
battle axe's picture

And massive wave of new MBA's who will always fill there ranks.

Wed, 03/14/2012 - 09:24 | 2253652 BorisTheBlade
BorisTheBlade's picture

Yes, and will work for less given a desperate job market.

Though that doesn't mean GS prospects will be good. No matter what anyone says, but even in financial industry where it is supposed to be only about money, belief in what you are doing is important even if it is just an illusion. Besides, since GS keeps perpetuating culture like that, fresh newcomers will skip on that part of motivation and go straight to pillaging eventually eating the whole organization from within. And with great appetite I bet.

Wed, 03/14/2012 - 14:20 | 2255167 MeelionDollerBogus
MeelionDollerBogus's picture

I think at this point it would be great to load up grocery stores with "I can't believe it's not Banking"

Wed, 03/14/2012 - 19:38 | 2256253 CoolBeans
CoolBeans's picture

Promotions + a burst of incentive bonuses to get others to come on board.

Wed, 03/14/2012 - 08:28 | 2253471 TheFourthStooge-ing
TheFourthStooge-ing's picture

Comay Mierda said:

Theories:

"1) Rats leaving a sinking ship: Either a big economic collapse is about to happen and they are leaving before it does, or a false-flag is coming our way.

2) The "good guys" are finally scaring the "bad guys" away: these resignations have been predicted by many geo-political analysts such as Benjamin Fulford, LaRouche, David Wilcock, and others.

 3) Nothing to see here, move along: I can't believe this theory anymore"

4) Gresham's Law applied to people: the "bad guys" are driving out the "good guys". From what I remember of Michael Scheuer's book Imperial Hubris, a similar process occurred in the CIA during the Clinton administration and accelerated during the Cheney administration. Intelligence provided by the rank-and-file was ignored or shoved aside because it didn't fit in with the political framework of the top people. A similar situation also happened in the Justice Department under Alberto Gonzalez.

 

Wed, 03/14/2012 - 08:56 | 2253537 tarsubil
tarsubil's picture

As others have pointed out about GS, the worst people have been leading these organizations for a lot longer than 10 or 20 years.

Wed, 03/14/2012 - 08:59 | 2253545 Nascent_Variable
Nascent_Variable's picture

It's hard to believe there are still people of conscience working in the CIA.  I don't think I could live with myself, knowing that the intelligence I give the administration could lead to an extrajudicial drone strike on an American citizen, authorized by the president and his secret kill panel.

The same is true for Goldman.  How do you justify the damage you're doing to the world?

Wed, 03/14/2012 - 09:03 | 2253565 kridkrid
kridkrid's picture

http://www.youtube.com/watch?v=UrOZllbNarw - Great scene to summarize your post.

Wed, 03/14/2012 - 10:18 | 2253923 Bastiat
Bastiat's picture

It's hard to believe there are still people of conscience working in the CIA.

Same for the FBI -- in fact I read a few years back they were having record turnover:  apparently even their policy of hiring only people right out of law school was insufficient in screening out anyone with a conscience or independent judgement.   Especially as their  "black ops" became more pervasive.

Wed, 03/14/2012 - 14:33 | 2255212 MeelionDollerBogus
MeelionDollerBogus's picture

Guess who's helping to "find" the lost funds from MF Global? Former FBI director Loius J Freeh.

I'm sure it's all just a happy coincidence.

These aren't the droids we're looking for. Move along, move along.

http://www.bloomberg.com/news/2011-11-25/freeh-appointed-trustee-in-mf-b...

especially in light of this:

http://online.wsj.com/article/SB1000142405297020396120457726984147721632...

Good thing bonuses are paid to retain good talent. Like retaining for a bankrupt company. Like good talent at never finding missing money or even suggesting anyone knew it was there except if there was no liability in admitting to knowing for a minute or two, ever.

Wed, 03/14/2012 - 09:31 | 2253671 tbone654
tbone654's picture

4) Gresham's Law applied to people: the "bad guys" are driving out the "good guys". From what I remember of Michael Scheuer's book Imperial Hubris, a similar process occurred in the CIA during the Clinton administration and accelerated during the Cheney administration. Intelligence provided by the rank-and-file was ignored or shoved aside because it didn't fit in with the political framework of the top people. A similar situation also happened in the Justice Department under Alberto Gonzalez.

You don't have to be a big bank to treat customers poorly.  The predatory corporate culture of the day, including that of commando Mergers and Acquisitions, lends itself to hate for customers and employees alike.  The "bad guys" are starting to scare a few of the good guys away.  But the good guys just go small business until they get bought out or realize they need the power of a bigger gang.  (efficiencies of scale)  You leave the gang and you get crushed...

Feudalism works, especially if no one is expecting the justice department to do something.  The thought that no one seems to care about what happened at MF Global, tells me the sheeple are currently getting enough "bread and circuses".  Which means an invading force can either choose to slaughter or enslave...

Wed, 03/14/2012 - 09:54 | 2253776 kridkrid
kridkrid's picture

You started your post with a quote, so it can't be "up-voted"... consider this an up-vote.  

What you are describing (what I believe you to be describing, anyway)... our society is run by sociopaths/psychopaths.  Not mass murdering psychopaths, exactly, but people who are wired differently than the other 98% of our population.  Psychopathic tendencies become self selecting to reach the highest levels of success in most parts of our society (law, finance, politics, etc.).  The revolving door between the regulatory bodies and the industries that they are designed to regulate... classic amoral activity.  

Wed, 03/14/2012 - 07:48 | 2253367 battle axe
battle axe's picture

This guy was there for 12yrs and didn't see this when he started, either he is a liar or an idiot. Sounds like some one got screwed on their bonus. 

Wed, 03/14/2012 - 07:57 | 2253385 DavidC
DavidC's picture

Not necessarily, he stated in his piece (assuming you read it) that the culture was not like that when he started there and had a long history of putting the client first.

I really like Nomi Prins's work; she's also ex-Goldman, I'd be very interested to know of her experience and reasons for leaving.

DavidC

Wed, 03/14/2012 - 07:59 | 2253389 JPM Hater001
JPM Hater001's picture

It's as likely if not more likey he learned the old adage- A fish rots from the head down...and the closer he got to the head the more he smelt the decay.

Any they are crooks.  That too.

Wed, 03/14/2012 - 08:30 | 2253473 TheFourthStooge-ing
TheFourthStooge-ing's picture

I see what you did there.

+1

 

Wed, 03/14/2012 - 08:32 | 2253474 Cursive
Cursive's picture

@JPM Hater001

Yes, it appears he finally woke up. This is why youth should be discounted because of it's inherent gullability or lack of adequate skepticism. As Matt Tiabbi found, GS has been doing this for decades.

Wed, 03/14/2012 - 09:39 | 2253699 Benjamin Glutton
Benjamin Glutton's picture

I disagree...while surely Goldman has been playing their clients throughout its existence to varying degrees this gentleman indicates that Goldman is now totally lacking in value as an investment adviser unless you are an Enron type company or Greek like banker/politician.

Public policy has morphed reasonable regulation to such extremes that what were once sensible limitations on the profitability/lawfulness of dubious transactions that they have created investment houses which are little more than giant spider webs.

Goldman is not unique in this regard.

Wed, 03/14/2012 - 12:15 | 2254217 DaveyJones
DaveyJones's picture

The same is true for "our" government. Given the two entities are utterly intertwined and interdependent as we slide into financial hell, it makes sense that the stress and corruption accellerates. See history

Wed, 03/14/2012 - 08:43 | 2253508 battle axe
battle axe's picture

DavidC wake up and take off the blind fold. GS has been pulling this shit for more then a 20yr+. All those CDO's that were put together in 06-08 where was Mr. Smith's disgust back then? He got paid and kept his mouth shut. Also he was shocked that the firm would recommend paper that would take care of their "AXES", come on, that has been going on since I started at BS 25+ yrs ago. This guy is simply someone who got blown out of the saddle at GS (probably got screwed on his bonus) and now he is telling everyone he found "god" and is shocked that this was happening. What  a load of bullshit this guy is trying to sell. Again, this Mr. Smith is either an Idiot or a liar. And yes I did read the story.

Wed, 03/14/2012 - 10:51 | 2254141 Greater Fool
Greater Fool's picture

Yeah, I'm inclined to agree. The "axe list" thing is no shock: This is the way you do business, especially in fixed income. Hell, it's the way you do business in a Japanese restaurant with "half-price sushi" on Mondays.

If you don't understand that "trading recommendations" from a global bank are really "exposures we'd like you to buy from us because we don't want them," then you have no business running money--your own or anyone else's.

Wed, 03/14/2012 - 08:54 | 2253531 resurger
resurger's picture

fuck this is scary shit.. something is burning somewhere...

you smell that ...

Wed, 03/14/2012 - 11:10 | 2254253 DaveyJones
DaveyJones's picture

is that the fat mans' cigar, our children being sacrificed or the basement of this highrise?

Wed, 03/14/2012 - 07:49 | 2253371 Chief KnocAHoma
Chief KnocAHoma's picture

This just in..... Former gs employee jumps in front of a moving train after shooting himself in the head four times.

In sports Obama filled out his brackets!

Wed, 03/14/2012 - 08:00 | 2253394 JPM Hater001
JPM Hater001's picture

Well there is no use taking chances on a suicide.  Best be sure you are good and dead before you stop trying.

Wed, 03/14/2012 - 08:39 | 2253494 LongSoupLine
LongSoupLine's picture

 

 

Hard to really say what Greg's backdoor intentions are with this "confession", or what events (other than his coming to Jesus moment) really lead him to go public, but one thing's for sure...it's the truth.  With that, we'll take it..thanks Greg, and good luck working for Jamie Dimon where things are soooo much better. (ok, maybe he's not going to JPM...just playing the odds with my statement).

Wed, 03/14/2012 - 09:00 | 2253550 sessinpo
sessinpo's picture

markmotive

Testify.

 

I recommend witness protection program. On the other hand, golman probably has people in that department. I think Greg just committed suicide. I surely hope we don't find him sleeping with the fish.

Wed, 03/14/2012 - 14:45 | 2255255 MeelionDollerBogus
MeelionDollerBogus's picture

Suicide? Whatever happened to "natural causes" ? http://youtu.be/v1_yL9dZ8uk

I hear Matt Simmons is also a big fan of hot tubs & surprise heart attacks.

Wed, 03/14/2012 - 09:39 | 2253698 Translational Lift
Translational Lift's picture

Greg OBVIOUSLY was not doing GOD's work....................

Wed, 03/14/2012 - 07:38 | 2253341 jcaz
jcaz's picture

Didn't make partner, eh Greg?

Wed, 03/14/2012 - 07:52 | 2253375 kridkrid
kridkrid's picture

Clearly. Doesn't make what he said wrong... except for the part where anything has changed in the past ten years. That part was bullshit. He may not have noticed, though he likely did.

Wed, 03/14/2012 - 08:35 | 2253488 azzhatter
azzhatter's picture

I'm sure it was much better under Paulson,Thain, and Corzine.

Wed, 03/14/2012 - 08:02 | 2253383 francis_sawyer
francis_sawyer's picture

.

Wed, 03/14/2012 - 07:38 | 2253342 Stackers
Stackers's picture

Hate to break it to Mr. Smith but we went sliding over the edge years ago, and just have not bothered to look down yet.

Wed, 03/14/2012 - 07:39 | 2253343 icanhasbailout
icanhasbailout's picture

I refuse to believe anyone could be at GS for 12 years and be this naive.

 

Wed, 03/14/2012 - 07:46 | 2253364 Zero_Sum
Zero_Sum's picture

I agree. Rather, I think this is a case of "I hit my number, now I'm ducking out before the walls collapse and throwing a grenade over my shoulder on the way out the door".

Wed, 03/14/2012 - 08:35 | 2253425 GetZeeGold
GetZeeGold's picture

 

 

Sounds like a nasty divorce gone really bad.

 

It's either pay the bitch off....or risk her going public. Apparently someone dropped the ball.

 

Wed, 03/14/2012 - 09:03 | 2253566 sessinpo
sessinpo's picture

You'd be surprised how much even the most ethical person will turn a blind eye when the paycheck is good enough. It is common psychology for those entering a certain culture to want to fit in. They may not commit devious acts, but they ignore what others do and find ways to justify it.

Wed, 03/14/2012 - 07:43 | 2253345 asteroids
asteroids's picture

Bravo Mr. Smith. Now, who's next? Don't be shy, confession is good for the soul. Anybody from BLS want to stand up?

Wed, 03/14/2012 - 08:01 | 2253398 JPM Hater001
JPM Hater001's picture

I have wantenly destroyed the fabric of understanding for our country and debased all that is good.  I also beat a little puppy to death last week with a tire iron...

Wed, 03/14/2012 - 08:21 | 2253449 williambanzai7
williambanzai7's picture

BRING HIM IN

Wed, 03/14/2012 - 08:24 | 2253459 GetZeeGold
GetZeeGold's picture

 

 

Yes officer......I'm sure that was the guy.

 

Wed, 03/14/2012 - 08:26 | 2253463 williambanzai7
williambanzai7's picture


This Klepto is still on the lam
All others would be in a jam
With justice now bought
He'll never be caught
He may have perfected "The Scam"!!!

The Limerick King

Wed, 03/14/2012 - 08:28 | 2253469 GetZeeGold
GetZeeGold's picture

 

 

He may have perfected "The Scam"!!!

 

.....and it may be hard to catch him......now that he's moved to Siam.

 

Wed, 03/14/2012 - 11:01 | 2254199 Boxed Merlot
Boxed Merlot's picture

Perhaps mixing in a little more Teneo in verse will keep the hounds on the trail as well. 

Their choice of Louis Freeh to "investigate" begs scrutiny.

Wed, 03/14/2012 - 12:17 | 2254588 DaveyJones
DaveyJones's picture

cause he never fogets his condom

Wed, 03/14/2012 - 08:37 | 2253492 azzhatter
azzhatter's picture

Ah Yes, Comrade Corzine looks good in Teal

Wed, 03/14/2012 - 09:41 | 2253708 Vlad Tepid
Vlad Tepid's picture

He'd look better in a bright orange jumpsuit..

Wed, 03/14/2012 - 09:31 | 2253669 resurger
resurger's picture

hahahah

Wed, 03/14/2012 - 10:39 | 2254048 ptoemmes
ptoemmes's picture

Yes, a Kony 2012 takeoff for him and the rest of the band of financial marauders.

Maybe Brad Pitt (aka Tyler) could explain the evil of Corzine to one of his adoptees.

Joseph Kony is truly evil, but he does not have a monopoly on evil.

Pete

Wed, 03/14/2012 - 10:57 | 2254176 Boxed Merlot
Boxed Merlot's picture

 “The father we know ran for public office because of a lifelong desire to give back to society as well as a love of the political process and a passion to be a progressive Democrat.”
JOSH CORZINE
JEFFREY CORZINE
JENNIFER CORZINE
Brooklyn, New York

Wed, 03/14/2012 - 15:47 | 2255508 Island_Dweller
Island_Dweller's picture

Asteroids asks: Anybody from BLS want to stand up?

 

Why would anyone want to come clean if the majority of people on this planet take the attitude of the posters here?  Instead of assuming that Mr. Smith was a young and naive kid who got higher and higher at Goldman and then was exposed to more and more crap until he couldn't deny it any longer and did a pretty noble thing by writing this.  Cognitive Disonance can be powerful (just ask the Nazis). Instead of applauding him, most of the people on this board call him a POS and say he's a liar who didn't get partner or the bonus he wanted.  Shame on you all!

 

You all say you want whistleblowers and then you shit on them.  Good luck with that strategy.......

Wed, 03/14/2012 - 07:41 | 2253346 Ancona
Ancona's picture

That made me throw up in my mouth a little bit. :-(

Wed, 03/14/2012 - 07:42 | 2253348 Bagger
Bagger's picture

Is this a good time to invest in horse's heads?

Wed, 03/14/2012 - 08:01 | 2253362 Wakanda
Wakanda's picture

 "...offer you can't refuse".

Wed, 03/14/2012 - 07:42 | 2253349 itchy166
itchy166's picture

We've already slid "right over the edge" I am afraid...

Wed, 03/14/2012 - 07:42 | 2253350 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Testicles.

Wed, 03/14/2012 - 08:05 | 2253408 JPM Hater001
JPM Hater001's picture

I applaud the guy too.  I mean, I have left jobs completely disgusted in the culture and you have to express it or it will never be questioned or change.

Oh, and in this case it will also never be investigated because last time I checked there is a fiducuary responsibility before all others and selling things to clients you dont think are good income producers clearely misses the point.

I'm trying to remember why advisors are forced to do 8 hours of ethics?  Fortunately I'm in insurance and we are only required 4.

Wed, 03/14/2012 - 08:15 | 2253433 GeneMarchbanks
GeneMarchbanks's picture

Question: does it take 12 years to figure out the things this man 'exposed'?

Answer: No, from the outside it takes a common sense person and a lucid 20 minutes of research.

 

Wed, 03/14/2012 - 09:13 | 2253606 kridkrid
kridkrid's picture

Which does raise an interesting point.  How pervasive is mind control?  I'm sure there is all sorts of rah-rah GS BS when someone get hired in.  People convince themselves of all sorts of things every day.  I'm guessing the hurdle isn't so great to think that Goldman Sacs is... on the inside.

Wed, 03/14/2012 - 10:39 | 2254069 Bastiat
Bastiat's picture

Making a shitload of money (a subset of having power) is the best mind control.  Over time and as one rises near the fish's rotting head (as someone said above) the cognitive dissonance between your interior and shared narrative of what you are doing vs the increasingly obvious facts can't be suppressed.  It really helps if that doesn't happen until you've accumulated enough money to live your life out in a comfortable exile from the industry.

Wed, 03/14/2012 - 11:05 | 2254221 kridkrid
kridkrid's picture

It doesn't even need to be a "sh-tload"... any amount greater than you could otherwise earn will do the trick.  Which is why a police state isn't so hard to create.  What other job is the cop going to take, especially in an economy that is grinding to a halt?  But yes... income is the best mind control (well... and maybe religion).

Wed, 03/14/2012 - 07:43 | 2253351 Mr. Lucky
Mr. Lucky's picture

A tardy mea culpa.

Wed, 03/14/2012 - 07:43 | 2253352 TrillionDollarBoner
TrillionDollarBoner's picture

I love the smell of truth in the morning.

Hats off to Greg Smith.

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