From One Ex-Goldmanite To Another: Nomi Prins Statement On Greg Smith's Resignation

Tyler Durden's picture

From Nomi Prins, former Managing Director at Goldman Sachs and aithor of It Takes A Pillage

My Statement Regarding Greg Smith's Goldman Resignation

Today, I have received dozens of media requests and hundreds of emails regarding former Goldman Sachs executive, Greg Smith's gutsy, and internationally resonating, public resignation.

I applaud Smith's decision to bring the nature of Goldman's profit-making strategies to the forefront of the global population's discourse, as so many others have been doing through books, investigative journalism, and the Occupy movements over the past decade since my book, Other People's Money, was written after I resigned from Goldman. It would be great if Smith's illuminations would serve as the turning point around which serious examination and re-regulation of the banking system framework would transpire.

The inherent conflict of interest that firms such as Goldman possess through enjoying the multiple roles of 'market-maker,' 'securities creator' and 'client-advisor' foster an environment rife with systemic risk. The trading revenue portion of Goldman's profits, as well as its derivatives vs. assets ratio, is the highest amongst the American bank holding companies. And yet, in the fall of 2008, the Federal Reserve approved Goldman Sachs (along with Morgan Stanley) to alter its moniker from investment bank to bank holding company, thereby allowing it to gain access to federal subsidies and potential ongoing support.

In this regard, the firm's practices should remain under intense scrutiny by the general public and legislators. I would hope that the message behind Smith's resignation will not be obfuscated by debates over the extent to which the firm's clients are either supported or exploited, but instead, serve as a powerful call to foster a more-strictly delineated and less reckless financial system.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nestle's picture

Financial sector is going to lead the charge tomorrow again.

 

trav7777's picture

probably...it's their way of pissing in the face of the 99%. the fuckin IMPOTENT 99%

Dermasolarapaterraphatrima's picture

Taxpayers (aka, the 99%) should feel warm and fuzzy being able to support the financial system and companies such as GS via Ben Bernank's Central Bank (aka, Federal Reserve). After all, did not the Goldman CEO last year made it clear he is, "doing God's work."

spiral_eyes's picture

"The inherent conflict of interest that firms such as Goldman possess through enjoying the multiple roles of 'market-maker,' 'securities creator' and 'client-advisor' foster an environment rife with systemic risk."

Nomi Prins is f'n sexy.

And I like her for her mind. 

Oh regional Indian's picture

It's all a part of the unfolding plan folks. the NY times, Goldman Sachs, New York, Insider suddenly blows up.... kind of like that US soldier in Afghanistan?

It's all a set-up. Now that everyone is angry enough with Wall Street, wall street will be selectively slapped around. Bread and Circuses... 

In this time, NO great change/announcement/movement is "real".

WHO said.. famously.... Don't get fooled again! Like Phony Kony, This Greg Smith thing is a bunch of smoke. Real shit is going down in ME/Africa... thsi is all just a distraction.

Meanwhile, check out the Sun, high weirdness abounds...

ori

/awe-in-spiring-surya-sun-sol/

Seer's picture

Yes, I think that you've spotted it.

Despite all the BS, the world ONLY works on the PHYSICAL plane.  Energy, oil to be exact, is THE game.

GetZeeGold's picture

 

 

Yup.....that's the game.....unfortunately most believe the paper is real.

 

Most new traders grew up with a wall of participation trophies....as they're being thrown on the scrapheap they'll wonder....what the hell just happened?

 

I hope the 99% are actually 44%.....otherwise we're pretty screwed.

 

Oh regional Indian's picture

The biggest problem is that give any 99er the keys to join the 1% and they'll trample 44% of the people to get in.....alone.

A a society, everything is skewed, thus (and by design), Chaos. Ordo Ab etc. to follow later.

ori

tamboo's picture

smith's a controlled opposition heeb, ron paul too.

junk away!

RollinsArline3's picture

my roomate's mom makes $83/hr on the computer. She has been fired from work for 9 months but last month her pay check was $18339 just working on the computer for a few hours. Read more on this web site .....  http://bit.ly/FPPP3j

Amagnonx's picture

The banks don't need customers, the politicians don't need voters.  In Greece, the politicians give their voters the finger and obey Brussels because - thats where the money comes from (in the US, its the same, but the voters pressure is magnitudes less) - the investment banks screw their clients, because they are only beholden to the Fed - because thats where the money comes from.

 

Its not rocket surgery - the morality is clear, and just laws are moral laws, but we will see no justice on this until there is a revolution, with or without violence.  The institution is the enemy - and we cannot work within it any more and expect just results.

 

The only solution is to exclude the institution from the circuit completely - a new financial system has to be built, and new government - these other pieces of garbage need to be dropped in histories trashcan - only the lesson needs to be remembered.

alien-IQ's picture

Then you'll LOVE the cover of the April issue of The Atlantic Magazine

Ben Bernanke: The Hero

http://static7.businessinsider.com/image/4f608c2569bedd8e3700006a-900-/a...

To be honest, at first I thought it was one of Banzai's posters...but then I realized it was for real and I damn near puked.

spiral_eyes's picture

I tried to read that article. The level of unadulterated nonsense spewing from that publication is growing to unbelievable levels.

Only recently they were saying currency wars are great news for everyone.

 

alien-IQ's picture

I couldn't read it either. After a couple of paragraphs, I was fit to be tied.

GetZeeGold's picture

 

 

Nobel Prize award......imminent.

 

williambanzai7's picture

Thank you for that. Lowenstein is a pompous fool.

alien-IQ's picture

When I first saw it, several things came to mind:

1) It's from the Onion.

2) Banzai having some fun.

3) Can I be having acid flashbacks after all these years?

It just did not occur to me that it could possibly be real...and then...to my horror...it was.

Tsunami Wave's picture

Funny enough, I had those same exact thoughts.  This is fucking unbelievable though.. I remember when this fucking idiot was named Time's "Person of the Year".  Just wow.

LasVegasDave's picture

There are a lot of people in the NY metro area who really believe that Bernanke is the saviour rather than the destroyer of the middle class and a heroin pusher

Fuck you baby boomers

 

MeelionDollerBogus's picture

Ya, seriously, there was something not long ago on the net mocking people who can't tell the difference between TheOnion and actual news.

The Atlantic just vindicated all of them.

Coldfire's picture

In the olden days it would have been like featuring John Wayne Gacy on the cover of "Boy's Life".

BeetleBailey's picture

Sweet Jesus.....a sure sign of the Apocalypse....this bastard Berschmanke on the cover of crap, called a "hero"....good Gawd.....this prick prints money and he's called a "hero"......holy mother ......

Cursive's picture

I would hope that the message behind Smith's resignation will not be obfuscated by debates over the extent to which the firm's clients are either supported or exploited, but instead, serve as a powerful call to foster a more-strictly delineated and less reckless financial system.

Hope is a four letter word.  The elites are too entrenched to allow the necessary changes.  Just look at the smirk on Jamie Dimon's face. 

kito's picture

But....but...jamie gives me rewards points........I just received a $25 gift card to home depot from them....well worth the $2000 in interest I paid on my card last year...

Cursive's picture

@kito

You're a revolver!  Say it ain't so!  No way those scumbags get an extra penny from me.  I'm seriously thinking about chucking all of my cards and going cash.  BTW, I'll be getting my $300 check next month.

TheFourthStooge-ing's picture

Cursive said:

Hope is a four letter word.  The elites are too entrenched to allow the necessary changes.  Just look at the smirk on Jamie Dimon's face.

The smirk on Jamie Dimon's face reminds me that rope and hang are also four letter words.


Cursive's picture

@TheFourthStooge-ing

As "Everyman" said in the Pham thread, I think it is coming to that, which is sad.  Once street violence starts, the victims are often the unintended.  I am by no means advocating that anyone lay down or rollover - but anyone who wishes to engage in protests or uprisings should consider the possible collateral damage.  I want a better country, not a bloodier one.

Oh regional Indian's picture

Very true Cursive. Unfortunately, the other side of Bread And Circuses is Blood and Gore.

ori

Miss Expectations's picture

Here's Caligula

Once at some games at which he was presiding, he ordered his guards to throw an entire section of the crowd into the arena during intermission to be eaten by animals because there were no criminals to be prosecuted and he was bored.[96]

http://www.enotes.com/topic/Caligula

azzhatter's picture

My fear is the corruption is so deep rooted, so entrenched that it can only end with violence. A Corzine or a Mozilo and others hanging from a lamp post . We seem to be beyond a peaceful fix.

ZDRuX's picture

She mentions how the government allowed Goldman to receive gov subsidies and support, but just earlier was saying how the gov needs to regulate the banks. The banks aren't the problem.. government being used as a conduit is the problem.

 

You will never get rid of human greed so don't try to outlaw it.. simply remove the entity that facilitates and protects this behavior and you've got an environment in which banks are scared to fail like any other business.

UP Forester's picture

They're not just scared to fail.  They're outright scared.

With the MF'nG trustee releasing $685 Million they "found" to try to appease the muppets, they're telegraphing their fear.  The backlash is getting to them.

They are desperately trying to keep the Reserve Currency from falling.  You can see that in the more and more frequent Thor's Hammer smacking on PMs.  Everyone with two functioning neurons can see right through any economic number that .gov or (for the most part) big banks put out.

The grip on the Ponzi Pole is slipping.  The waters are receding.  The little fish are flopping on the sand, looking up at the house of cards, and seeing it for what it is, while the big fish are quietly swimming away.

I hope you're inland, away from the big cities, because this tsunami is going to be epic.

chump666's picture

devour it's self in realtime.

that is awesome.

Arkadaba's picture

"... the firm's practices should remain under intense scrutiny..."

Definitely framing any debate (whether consciously or not) by the reference to the practices of the firm as opposed to the scrutiny of the firm itself. Kind of weak.

Alexandros's picture

The “assault” started with the "commander of chief" of the Federal Reserve Bank of USA targeting all the countries; The CEO of the central public bank of the USA with the private funds, the public bank of the USA with the Club private funds. After the fall of the interest rates, they aimed at “flooding” West with “cheap” money, in order to destroy its industrial capital. They were turned to “giants” using unnatural means like the “air” of the housing loans in the USA and then they went out to the Planet to “sweep” everything. With the collaboration of the "generals" from the other side of the ocean they leveled everything. They just threw money to the market in a way destroying capital. They financed commerce and this exhausted production.

Using cheap money, traders exhausted producers within a few years. Citibank, Deutsche Bank under the auspices of the European Central Bank swept everything. They were the "pace-setters" and all the other banks of Europe were following. Abundant money turned industrial capital “useless” and this is what "shut them down". The “bombarding” of Europe was total and absolutely “leveling”. Within just a few years all the Western production was moved in China in just a few steps. Western countries ended up in total unemployment. The elimination of productions and the control of the market by the traders made the supreme capital of Copyright come true. This is the Club capital. The empire has started to “rise” over the dead “bodies” of factories.

World War III - The First Private War in History

Those who won all battles shall lose the war

http://eamb-ydrohoos.blogspot.com/2012/02/world-war-iii.html

Authored by PANAGIOTIS TRAIANOU

i-dog's picture

Thank you for changing your message! This one is much more focussed than the last [frequently repeated] one ... keep it up!

tamboo's picture

good read, i doubt the tylers have the balls to put it on zh.

gwar5's picture

I think all of the Goldmanites should start squealing on all the criminal activities.  We already know they have no ethics. Maybe they can start with cooking the books on Greece and how they were able to pass it off. The Germans want to know so they can clawback.

nah's picture

not till oil is a buck fifty or ten dollars

non_anon's picture

I think Nomi is hot in a Jewish way

CompassionateFascist's picture

She plays both sides, like co-ethnic Max Keiser: bankster to socialist critic and back again. I hear her "Natalie Prentice" novel(s) are somewhat S&M'y. Possibly I'll read one someday...but not while ZH is available.

headless blogger's picture

Max Keiser is NOT Jewish. He had to set the record straight on this before.

sitenine's picture

...in the fall of 2008, the Federal Reserve approved Goldman Sachs (along with Morgan Stanley) to alter its moniker from investment bank to bank holding company...

Stupidity knows no bounds.

Do you think MF Global was an isolated event?

Do you think these holding companies will ever revert back to investment banks?

Do you think your deposits are safe just because they are FDIC insured?  Are you SURE?

Do you really think they give a shit about you?

Do you honestly think this can end well?

I don't.

Desert Irish's picture

Money talks bullshit walks......Muppets take a hike....

alien-IQ's picture

so may people use that term "money talks". the problem is that they don't listen to what the money says. when "money talks"...it's usually telling you that you are it's whore.