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As Whistleblowing Becomes The Most Profitable Financial 'Industry', Many More 'Greg Smiths' Are Coming

Tyler Durden's picture


Minutes ago on CNBC, Jim Cramer announced that Greg Smith will never get a job on Wall Street again as "one never goes to the press. Ever." Naturally, the assumption is that the secrets of Wall Street's dirty clothing are supposed to stay inside the family, or else one may wake up with a horsehead in their bed. There is one small problem with that. Now that compensations on Wall Street have plunged, and terminations are set for the biggest spike since the Lehman collapse, the opportunity cost to defect from the club has also collapsed. And if anything, Greg Smith's NYT OpEd has shown that it is not only ok to go to the press, but is in fact cool. So what happens next? Well, as the following Reuters article reports, 'whistleblowing' over corrupt and criminal practices on Wall Street is suddenly becoming the next growth industry. Yes - people may get 'priced out' of the industry, but since the industry will likely fire you regardless in the "New Normal" where fundamentals don't matter, and where the only thing that does matter is the H.4.1 statement (as Zero Hedge incidentally pointed out back in early 2010), why not expose some of the dirt that has been shovelled deep under the coach, and get paid some serious cash while doing it?

Here is Reuters on why we are about to get a deluge of Greg Smiths exposing the muppet army, only this time they will not cast merely ethical aspersions about their employers, but will provide solid, hard evidence of criminality.

Whistleblowers who were instrumental in revealing epidemic mortgage abuses, some of whom risked their careers to do so, are getting multi-million-dollar payouts, court documents show.


Victor Bibby and Brian Donnelly, two Georgia mortgage brokers, are among the handful of whistleblowers whose stories are coming into focus.


Bibby and Donnelly said they started noticing in 2005 that lenders were charging veterans hidden fees on mortgage refinancing - a violation of the government's Interest Rate Reduction Refinancing Loans program.


The pair, who worked for U.S. Financial Services Inc, a mortgage brokerage firm in Alpharetta, Georgia, said they became suspicious when lenders told them not to show an amount charged for attorneys fees on loan documents, but instead add the sum to the charge shown for "title examination fee."


After lenders ignored their concerns, Bibby and Donnelly hired an attorney and filed a whistleblower suit.

The payoff to rat out criminal behavior?

The wait paid off in the form of a $45 million government settlement with JPMorgan Chase & Co that became public this week. Bibby and Donnelly and their attorneys will receive 26 percent, or $11.7 million.

And many more are coming:

The case is one of five whistleblower suits settled for a total of $227 million as part of the broader $25 billion deal with five lenders over foreclosure abuses, according to court documents filed this week.


Details of the cases are emerging slowly as suits are unsealed and prosecutors disclose settlements.


U.S. Attorneys in North Carolina and South Carolina said on Monday that five banks - Bank of America Corp, JPMorgan Chase, Wells Fargo & Co, Citigroup Inc and Ally Financial - agreed to pay the amount to address allegations they participated in a nationwide practice of failing to obtain the required mortgage assignments, documents used to transfer ownership of loans.


The lenders also used false assignments to submit Federal Housing Administration insurance claims, prosecutors said.


The whistleblower in the case, Florida homeowner Lynn Szymoniak, will receive $18 million.

But wait, there's more. While Wall Street will hate these newly turned "rats", America's taxpayers, tired of being raped on a daily basis by Wall Street will embrace the "whistleblowers", especially since there is money finally coming back from Wall Street to the "rest of America."

Two of the other settlements outlined this week - for $75 million and $6.5 million - appear to be related to an investigation into whether Bank of America and its Countrywide Financial unit knowingly made FHA-insured loans to unqualified borrowers.


Prosecutors in New York said in February they had reached a $1 billion settlement with the bank over these practices, but have not yet filed court documents.


Court documents have not been filed in the fifth case, which resulted in a $6.2 million settlement.


Legal releases in the $25 billion mortgage settlement indicated other whistleblower cases are still in the works.

Sure, these people are terminally gone from the industry...

Bibby, who is 46 and married with three children, and Donnelly, who is 56 and married, said they don't have plans for their portion of the settlement. They will have to pay taxes and attorney fees out of the $11.7 million sum.


U.S. Financial Services at one time had about 50 employees, but is now basically out of business. They are not sure what they will do next.


"I think we're kind of dead in this industry, to say the least," Bibby added.

But so what? If the opportunity cost of staying is offset by millions in whistleblower payoffs, it makes the return on loss of career not only tolerable but largely desired.

Sorry Cramer, Greg Smith is just the beginning- with his Op-Ed he has unleashed an avalanche of similar disclosures, many of which will expose the true dirt that you and yours would do everything in your power to cover up.

Incidentally, and as a reminder, Zero Hedge will always gladly publish without editing any of our readers' reports of criminal or less than legal activity witnessed at their financial employers.


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Thu, 03/15/2012 - 09:49 | 2257466 resurger
resurger's picture


Thu, 03/15/2012 - 10:04 | 2257551 Manthong
Manthong's picture

Hey, you disaffected Wall Streeters remember:

He who outs first, outs best..

                   and gets the best book deals!

Thu, 03/15/2012 - 10:08 | 2257566 jcaz
jcaz's picture

Maybe true he won't find another job,  but I doubt he worked for free the past 10 yrs...

Oh, and I doubt that he blew up HIS hedge fund, and has to go begging to CNBC for a job as a "reporter".......

Thu, 03/15/2012 - 10:35 | 2257680 trav7777
trav7777's picture

bbbbut....bbbbbut....."see something, say something"????  WTF?

The DHS is telling us to snitch, no? 

Thu, 03/15/2012 - 10:46 | 2257716 john39
john39's picture

yeah but they mean brown people... or crazy white guys with guns who buy gold....   not our saviors (gag) the bankers...

Thu, 03/15/2012 - 11:13 | 2257753 The Big Ching-aso
The Big Ching-aso's picture



"Man who blow whistle must be ready to take it on chin."



Thu, 03/15/2012 - 11:25 | 2257851 whstlblwr
whstlblwr's picture

Fucking Cramer, news for you, money isn't everything, and you're not a 'journalist.' You're paid hack and everyone knows it.

“A man has honor if he holds himself to an ideal of conduct though it is inconvenient, unprofitable, or dangerous to do so.” -Walter Lippmann (American journalist)

Thu, 03/15/2012 - 12:20 | 2258225 jus_lite_reading
jus_lite_reading's picture

There are few Americans with that honor... sorry to say. This is not the America I once knew!! If America had followed the constitution to a T from day ONE, the world would not be in the situation it finds itself in!! The constitution does not allow for fiat money!!

Thu, 03/15/2012 - 10:09 | 2257570 tarsubil
tarsubil's picture

Rats leaving the ship means the ship is sinking.

Thu, 03/15/2012 - 10:21 | 2257618 King_of_simpletons
King_of_simpletons's picture

Wall Street + Fed = Mafia.

What's surprising ?

Thu, 03/15/2012 - 10:45 | 2257709 Son of Loki
Son of Loki's picture

Movie rights!....I hope they make a movie out of this staring "doing God's work" himself.....and the other Creatures from Wall Street.....

Thu, 03/15/2012 - 10:53 | 2257739 WonderDawg
WonderDawg's picture

Doing God's Work would make a great title.

Thu, 03/15/2012 - 11:15 | 2257809 Executioner
Executioner's picture

And here we have MSM trying to make a lemonade out of this event... Hey you wallstreeters remember the rume of silence otherwise no jobs for you.

Well, the right way should be: No one in that or that firm industry will ever get a fkng client again, because one should never go AGAINST their clients.


Cramer will never get audience again since one should never use tv to downplay those who are telling what's going (even if it's a former gs) instead of focusing on the real issue, the real villainy.

Thu, 03/15/2012 - 10:08 | 2257564 jus_lite_reading
jus_lite_reading's picture

"Doctor, I think we have a pandemic on our hands! Retreat to the bunker!"

Thu, 03/15/2012 - 10:00 | 2257527 I think I need ...
I think I need to buy a gun's picture

did you guys see the video? Cramer sounded like the psycho that he is

Thu, 03/15/2012 - 10:25 | 2257635 Votewithabullet
Votewithabullet's picture

Cramers adopted the street creedo...snitches  get stiches? Or was it" bitches get stiches, snitches get put in gator holes"?

Thu, 03/15/2012 - 10:43 | 2257707 battle axe
battle axe's picture

Only problem is when you are fired from an Investment Bank they make you sign a confidentiality agreement that says that you can not say anything about the firm. If you don't sign it you do not get your severance package. Now would be the time when more of these stories come out because the Bonuses have already cleared to your bank account so if you are going to leave your position do it now and then talk. Only problem is the firm might hit you with lawsuits to drain money from the whistleblower to set an example that they will cause pain to anyone else who is thinking of opening their mouth... 

Thu, 03/15/2012 - 10:50 | 2257725 john39
john39's picture

not everyone signs.  This woman was not an investment banker, but the situation is comparable:

Thu, 03/15/2012 - 10:54 | 2257743 battle axe
battle axe's picture

True, but I would say 90% do, because they want the money to buy time to find another job. 

Thu, 03/15/2012 - 23:03 | 2260584 MeelionDollerBogus
MeelionDollerBogus's picture

The complaint describes a broken mortgage-processing system. In one instance, employees erased records of about 1,000 loans that Hunt’s quality-control team identified as possibly fraudulent, according to the complaint. Defects identified by the quality-control team didn’t make it into reports, a violation of HUD requirements, it said

Once again showing it's not just the articles but the comments that are the best reason to keep reading zerohedge. Thanks

Thu, 03/15/2012 - 10:54 | 2257747 SheepDog-One
SheepDog-One's picture

What Cramer was really saying is Greg Smith wont ever get a job with any criminal Wall St firm ever again....probably can walk on to a top job in an honest bank though.

Thu, 03/15/2012 - 09:51 | 2257476 SHEEPFUKKER

Hopefully Mr. Smith does not fall victim to any horrific "accidents". 

Thu, 03/15/2012 - 10:29 | 2257658 zenbones
zenbones's picture

I'd stay clear of hot tubs.  And make sure to have some aspirin on hand.

Thu, 03/15/2012 - 23:08 | 2260600 MeelionDollerBogus
MeelionDollerBogus's picture

oopsies, looks like someone tripped & fell into a totally natural heart-attack.

Thu, 03/15/2012 - 09:52 | 2257477 GeneMarchbanks
GeneMarchbanks's picture

RICO, now!

Thu, 03/15/2012 - 15:05 | 2257547 DaveyJones
DaveyJones's picture

the unwritten premise of RICO is that those enforcing it can not be members

Thu, 03/15/2012 - 09:51 | 2257479 Nothing To See Here
Nothing To See Here's picture

Goldman to Greg Smith : "I find your lack of faith disturbing"

Thu, 03/15/2012 - 10:01 | 2257530 BorisTheBlade
BorisTheBlade's picture

He simply didn't get the memo.

Thu, 03/15/2012 - 09:53 | 2257480 Pasadena Phil
Pasadena Phil's picture

This is the Wikileaks phenomena spreading. I'm still undecided about how I feel about Wikileaks considering but most of the info they have relesased reveals that our halls of power are populated by the slimiest among us, It helps to get that out in the open. The truth is more of a threat to the corruptocrats than to national security.


We need an airing out in this country. The corruption has festered for so long that the stink is unbearable.

Thu, 03/15/2012 - 10:01 | 2257529 Nothing To See Here
Nothing To See Here's picture

Why are you still undecided about Wikileaks? These guys are heroes and Asange will go down a martyr imo.

Thu, 03/15/2012 - 10:30 | 2257661 zenbones
zenbones's picture

Yes, I heard the Mossad is planning a BBQ in his honor for all the great work he does for them.

Thu, 03/15/2012 - 10:12 | 2257585 DaveyJones
DaveyJones's picture

I figure he must have pissed off someone if they're trying to extradite him for not wearing a condom.

Thu, 03/15/2012 - 11:13 | 2257806 zapdude
zapdude's picture

I am skeptical of Wikilieaks as well -- how many times have they signalled they're going to drop a bombshell on the corruption in the financial services, yet failed to do so? 

The fact they won't even touch 9/11 Truth evidence makes me think they're controlled by TPTB and are allowed to only publish sanctioned secrets / dirt, but never blow the cover on the really important cover ups and show the world where all the bodies are buried.

It may sound paranoid, but if they really had the FUBM mentality, were the 'heroes against the elitist oppressors', and wanted to expose all the dirt, what's keeping them from doing it?  Their reputation?  Just seems too controlled and convenient for Wikileaks not delve too deep into the real underlying problems...

Thu, 03/15/2012 - 09:52 | 2257481 postafoa02
postafoa02's picture

Another one just out, on JPM / Blythe Masters Silver scam

Thu, 03/15/2012 - 09:54 | 2257492 GeneMarchbanks
GeneMarchbanks's picture

Hopefully 'Whistleblowing' becomes a bigger bubble than Apple.

Thu, 03/15/2012 - 10:11 | 2257581 jus_lite_reading
jus_lite_reading's picture

God bless the internet!

OH and why do think the wall street connected and funded politicans RUSHED to push through 5 internet "red pill" bills in such short time and UNDER THE FU&&ING RADAR OF THE PUBLIC?


THEY KNEW the shit was about to hit the fan!!!

Thu, 03/15/2012 - 10:32 | 2257670 mrgneiss
Thu, 03/15/2012 - 10:51 | 2257732 bullnutz
bullnutz's picture

Postafoa02...The Doc's has a full report on the JPM Silver Scam

Thu, 03/15/2012 - 11:02 | 2257776 WillyGroper
WillyGroper's picture

holy frijole! it's getting fun now.

Thu, 03/15/2012 - 10:06 | 2257482 Mercury
Mercury's picture

Well he's right.

Monika Lewinski was cool for 15 minutes too....and then she never got another job, anywhere, ever.

Gushers of government reward money will dry up as soon a whistleblower uncovers dirty government hands engaged in previously unadvertised mega-bank activity.

In 15 minutes most likely...

Thu, 03/15/2012 - 10:07 | 2257559 Scary
Scary's picture

But that wasn't a whistle she was blowing...

Thu, 03/15/2012 - 10:08 | 2257562 Xinu
Xinu's picture

Yeah, but she sucked.

Thu, 03/15/2012 - 11:28 | 2257864 tiwimon
tiwimon's picture

and did not swallow..


/as shown by the, uh, stain on an article of clothing

Thu, 03/15/2012 - 10:09 | 2257568 DaveyJones
DaveyJones's picture

I don't know, think there's a large underdeveloped market for men's custom handbags

Thu, 03/15/2012 - 10:12 | 2257586 Mercury
Mercury's picture

A bearish, macro leading indicator if ever there was one.

Thu, 03/15/2012 - 10:17 | 2257603 DaveyJones
DaveyJones's picture

bearskin macrame handbag - brilliant

Thu, 03/15/2012 - 10:56 | 2257752 SheepDog-One
SheepDog-One's picture

What are you talking about Mercury? Monica Lewinski never got a job anywhere? I beg to disagree, she got a huge gig at Revlon I think it was, 6 figure salary. 

Thu, 03/15/2012 - 11:33 | 2257894 Mercury
Mercury's picture

She had a lot of "jobs"...for 15 minutes. But I doubt she'd tell you now that revenues have exceeded the expenses of the whole enterprise.

Besides, she's an economist now.  Perfect.

Thu, 03/15/2012 - 09:53 | 2257485 BorisTheBlade
BorisTheBlade's picture

Exactly, they will blow the whistle in increasing numbers and walk away with immunity, well, some of them.

Thu, 03/15/2012 - 09:53 | 2257489 LongSoupLine
LongSoupLine's picture

Fuck Cramer, that coked-up mental case is a f'ing idiot and Goldman asspuppet

Thu, 03/15/2012 - 10:19 | 2257605 centerline
centerline's picture

Him and so many others will someday be seen as all that was wrong with our current times.

Thu, 03/15/2012 - 10:35 | 2257682 azzhatter
azzhatter's picture

Somebody should blow the whistle on that cocksucker CRamer. He is a fucking cancer on society, fuck coked up bullshit carnival barker

Thu, 03/15/2012 - 10:58 | 2257758 battle axe
battle axe's picture

John Stewart did it on the Daily Show when Cramer was on. Cramer was gutted by Stewart like a fish it was awesome to watch....

Thu, 03/15/2012 - 10:52 | 2257736 Clowns on Acid
Clowns on Acid's picture

Yes...but what will be the cost of the damage...before they are seen as "all thast was wrong"?

Thu, 03/15/2012 - 09:54 | 2257493 Everybodys All ...
Everybodys All American's picture

I'd like to see a whistle blower come out at CNBC. You can't tell me don't have an agenda over there that doesn't get discussed in meetings every day.

Thu, 03/15/2012 - 10:04 | 2257546 HD
HD's picture

Unfortunately - that's the media now. 100% for profit and tightly controlled message. Report anything that will generate ratings and clicks - while not biting the hand that feeds you. There is no such thing as journalistic integrity anymore - it has been sacrificed in the name of profits and "access".

Only six media companies own the media:


Thu, 03/15/2012 - 10:42 | 2257705 trav7777
trav7777's picture

now?  It's been that way since one group cinched their stranglehold on it.

Thu, 03/15/2012 - 11:08 | 2257794 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"been that way since one group cinched their stranglehold on it."

THOSE WHO MUST NOT BE NAMED, because it is politically-incorrect to notice.

Thu, 03/15/2012 - 10:55 | 2257713 LouisDega
LouisDega's picture

So true. We need Walter Cronkite , Jim Jensen, Bill Buetel and Roger Grimsby back. Sarc 100% off

Thu, 03/15/2012 - 10:59 | 2257765 battle axe
battle axe's picture

Roger Grimsby, I loved that guy, angriest man on TV. 

Thu, 03/15/2012 - 11:25 | 2257837 LouisDega
LouisDega's picture

What an era. I so miss it. My father in law saved some copies of NY daily news from 1974. Now that was  news.. real news.  

Thu, 03/15/2012 - 09:55 | 2257501 johnnymustardseed
johnnymustardseed's picture

Great article about the assholes at Bank of America 

Bank of America: Too Crooked to Fail | Politics News | Rolling Stone
Fri, 03/16/2012 - 00:27 | 2260823 MeelionDollerBogus
MeelionDollerBogus's picture

Holy cow, that's an amazing article. Since page 1 is filled with zingers & everyone should read it, I thought just for fun I'd take this quote out of page 2

The rationale for allowing that merger spree in the first place was based on a phony assumption: that big banks would somehow be more efficient and more profitable than small ones. "The whole premise of a Citibank or a Chase or a Bank of America is wrongheaded," ... Yves Smith. "Studies consistently show that after a certain size threshold, bank efficiency taps out. In fact, it turns out that all those cost savings the banks were supposed to enjoy from being bigger were actually based on cutting corners and fraud."

Thu, 03/15/2012 - 09:56 | 2257503 scatterbrains
scatterbrains's picture

sweet!  financial Joe Stacks  bring it bitchez!  I want to see a swarming angry beehive of activity.

Thu, 03/15/2012 - 09:56 | 2257504 Brokenarrow
Brokenarrow's picture

I wish I had something to rat them out for.

A Mc Veigh will come from the shadows one day.

Thu, 03/15/2012 - 10:02 | 2257535 mess nonster
mess nonster's picture

McVeigh. All action, no talk.

Thu, 03/15/2012 - 09:57 | 2257513 sunaJ
sunaJ's picture

It's the new golden parachute.

Thu, 03/15/2012 - 09:57 | 2257514 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

When asked how Walled Street was taking the whistleblowing, Cramer will retort that, "The Bavarian Illuminatti are fine!"

Thu, 03/15/2012 - 09:59 | 2257521 Theta_Burn
Theta_Burn's picture

This sums up why Corzine and Co all walked.

Very soon they will start eating each other

Thu, 03/15/2012 - 10:33 | 2257674 tbone654
tbone654's picture

MF Global - Now those are real "muppets"...  They've taken it in the pipe sooooo well...

Thu, 03/15/2012 - 10:01 | 2257532 rsnoble
rsnoble's picture

2 thoughts:  Greg Smith spends 12 years working for someone he thinks is pure evil.  Did he leave for these reasons or is the shit about to hit the fan and he's doing his on PR and washing his hands clean like he never had anything to do with it?

#2......STFU Jamie Dimon!  Bullshit damage control from someone who's last name should be changed to Demon.

The cats out of the bag you fkn morons.

Thu, 03/15/2012 - 10:12 | 2257589 Global Hunter
Global Hunter's picture

From the day we're born here in the west we're told to study and work hard, if you really work hard one can be "a doctor a lawyer", your parents and teachers push you to study to make money and have a career.  One works their ass off then gets what they think is a reward, a good job with a reputable company (what they thought was reputable) in a reputable business.  Along the way some people wake up from this trap.

Thu, 03/15/2012 - 10:20 | 2257615 espirit
espirit's picture

Smith prolly didn't get the bonus or promotion he thought he'd deserved this last 6 mos.

Never met one that wasn't a pompous ass.

They're burned out - and rich - by age forty.

Thu, 03/15/2012 - 10:48 | 2257719 reload
reload's picture

Exactly: for 12 years it was profitable enough to stomach any ethical concerns. Now it is not, and after 12 years at GS an individual on his pay/bonus scale simply does not need the agro any more. He may be right about the culture getting worse but as head of department, what did he do about it? just took the money anyway and then said after the fact - I worked for a bunch of crooks.  

Thu, 03/15/2012 - 11:00 | 2257770 WonderDawg
WonderDawg's picture

I'm as cynical as anybody here, but Jeebus, the guy wakes up and does the right thing and still gets bashed? There might be some truth to what you say, but at least he's doing the right thing now.

Thu, 03/15/2012 - 10:02 | 2257538 FXPortent
FXPortent's picture

People like this will always have some sort of a living. He will most likely be offered a sum of money to write a book, or be approached about a movie/documentary.

Monica Lewinsky was a complete moron, let's not forget this little fact.

Greg Smith on the other hand, even though far from a big shot, will not be left completely in the dirt.

Thu, 03/15/2012 - 10:04 | 2257545 ShankyS
ShankyS's picture

Now that is an avalance (the one of whistle blowers) that I look forward to seeing. 

Thu, 03/15/2012 - 10:04 | 2257548 mess nonster
mess nonster's picture

A sudden Goldman collapse would be the ultimate Black Swan. I can dream, can't I?

Thu, 03/15/2012 - 10:50 | 2257727 TuffsNotEnuff
TuffsNotEnuff's picture

We stopped dealing with them in 2006. Made it a rule in 2007.

Sitting in for due diligence on GS presentations, then researching their "facts" left no choice.

I have no idea why their derivitives business is still in business. Or anything else, for that matter. Why do investment teams pay fees to get a combo of lie/cheat/fraud ? They're sharks and all investors are the fish.

"Nice dogs, Queenie !"

Thu, 03/15/2012 - 10:04 | 2257549 AcidRastaHead
AcidRastaHead's picture

Awesome new industry.  If only we can squeeze the lawyers out somehow.

Thu, 03/15/2012 - 10:12 | 2257561 TPTB
TPTB's picture

Yesterday Jim Cramer on squakbox


"Apple produces something everybody wants (the new retinal camera ipad)... At this price, buy the stock."

Thu, 03/15/2012 - 10:22 | 2257620 espirit
espirit's picture

Spy - Cam?

Thu, 03/15/2012 - 10:34 | 2257677 zenbones
zenbones's picture

Rectum camera ipad?

Thu, 03/15/2012 - 10:52 | 2257735 TuffsNotEnuff
TuffsNotEnuff's picture

DIY colonoscopy ?

Thu, 03/15/2012 - 11:50 | 2257990 TPTB
TPTB's picture

I think you scan the retinals of possible business contacts with it.



Thu, 03/15/2012 - 10:08 | 2257563 digalert
digalert's picture

"reports of criminal or less than legal activity"

I thought what I've been reading at ZH over the years has all been criminal or less than legal activity.

Is buy buy buy Cramer a mad muppet?

Thu, 03/15/2012 - 10:14 | 2257591 mess nonster
mess nonster's picture

Recently, someone, recovered a gob of spit ejected by Cramer during one of his shows, and had it DNA tested.

It appears Cramer shares 98% of his DNA with the Snuffleupagus, Grover, and Oscar the Grouch.

Thu, 03/15/2012 - 10:10 | 2257576 j0nx
j0nx's picture

Not like the gov will do anything about it or investigate any of the claims. In fact I'd lay even money that the gov will investigate the whistleblowers for what they did instead. Nothing will be investigated until a million people show up in front of eric holder's office demanding it and I sure as shit don't see that happening in the days of snooki and march madness. Fughet about it. The people have spoken loudly and they prefer bread and circus.

Thu, 03/15/2012 - 10:12 | 2257583 tmosley
tmosley's picture

Smell that?

Smells like FEAR.

Thu, 03/15/2012 - 10:12 | 2257584 1835jackson
1835jackson's picture

The BIG rats left the ship a long time ago.

Thu, 03/15/2012 - 10:49 | 2257722 Clowns on Acid
Clowns on Acid's picture

You are correct Jack - Weill, Rubin, Clinton, Raines, etc...

Thu, 03/15/2012 - 10:15 | 2257598 PMakoi
PMakoi's picture

I would love to believe Greg Smith's own sincerity, and GS is probably overdue tar and feathering, but there is also the self interest motive of whistle blowers who can switch teams (or start their own team) and take hundreds of thousands, millions, or billions of client wealth with them.  Many investors are not simple sheep, goats maybe, cattle perhaps, but many are sorely pissed off about losing money, and about not earning decent returns on THEIR capital.  Make no mistake, the basis of the game is THEIR money.  If bank runs scare TPTB, guys like Smith that can play Pied Piper are also a threat to these powers.  Not many have shown Smith's guts.  I tip my hat to him for that, but I also suspect he's not retiring.  Cramer is full of shit.  Smith probably will be hired in a heartbeat if Smith can pull his GS customers along with him.  And. this publicity certainly won't hurt his chances of attracting other fed up customers/investors.

Thu, 03/15/2012 - 10:38 | 2257692 Acet
Acet's picture

Many if not most of the customers of investment banks are instutional investors like funds and pension funds.

The structure of funds is to have one or more persons who manage (and risk) somebody else's money while being paid a fat fee for it even for lousy performance (in fact, most funds underperform the market).

So what you have is a bunch of guys (at the investment bank) selling overpriced services to a bunch of other guys (fund managers) who themselves receive overpriced fees, with both the overpriced services and the overpriced fees paid out by the people that have their money in those funds.

Guess who the real muppets are here ...

Thu, 03/15/2012 - 12:01 | 2257599 realtick
realtick's picture

Years ago at Barnes & Noble I bought a book called "The Illuminati Manifesto". This was before the esoteric section exploded after the DaVinci Code. It was hard to believe that it was on the shelf.

The author made a statement that I have never forgotten:

"The Illuminati envision a world in which its citizens are valued not only by social status and wealth, but by their integrity and honor, by the standard of individual rights; by the moral standard, by how they live in regards to each other, by the respect and honor they hold for the individual rights of others."

Thu, 03/15/2012 - 10:22 | 2257601 GoinFawr
GoinFawr's picture

Watch your back Miss Gradenko

Thu, 03/15/2012 - 10:19 | 2257607 LoneStarHog
LoneStarHog's picture

Uh!...There can be thousands of Whistleblowers...Who cares?...It will require ONE PROSECUTOR...Fat chance of that!

Thu, 03/15/2012 - 10:19 | 2257608 Antifaschistische
Antifaschistische's picture

I'm all conflicted....does this mean, that one day ZH may have competition from the mainstream media exposing WallStreet criminal and immoral activity?   They've got a long way to go.


Thu, 03/15/2012 - 10:27 | 2257643 espirit
espirit's picture

Small fry, taking some heat off to prevent a blow off top.

Think cynically.

Thu, 03/15/2012 - 10:20 | 2257611 web bot
web bot's picture

I'm starting to dislike Cramer.

He's now starting to look like a bag of shit with a hole in it. He should just plug the hole.

Thu, 03/15/2012 - 11:08 | 2257792 WonderDawg
WonderDawg's picture

He's now starting to look like a bag of shit? What did he look like before now? The guy is a clown and a shill and always has been.

Welcome to the party. Rub the sleep from your eyes and have some coffee. But prepare yourself; reality isn't as pretty as the delusion.

Thu, 03/15/2012 - 10:21 | 2257617 Seasmoke
Seasmoke's picture

I want to see you smile again
Like diamonds in the dust
The amazing sound of the killing hordes
The day the banks collapse on us

Thu, 03/15/2012 - 10:23 | 2257624 Cursive
Cursive's picture

Who is Cramer to say that you never go to the press? He's made a lifetime of his 15 minutes of confessions fron Cramer Berkowitz.

Thu, 03/15/2012 - 10:23 | 2257626 Police Commissi...
Police Commissioner Jacobs's picture

"..on CNBC, Jim Cramer announced that Greg Smith will never get a job on Wall Street again as "one never goes to the press. Ever."


I love it when the mainstream media starts being critical of people being too promiscuous with means that it's something true, something big, and something the ruling oligarchy does not want to get out.

Thu, 03/15/2012 - 10:27 | 2257627 CrimsonAvenger
CrimsonAvenger's picture

Does anyone else think that this is the American parallel to the Tunisian who set himself on fire and started the Arab Spring? I mean, we're too pussified to ever actuallyl physically set ourselves on fire (at least I am, I'll tell you that for free), but isn't this much the same thing conceptually?

Thu, 03/15/2012 - 10:26 | 2257639 web bot
web bot's picture

This is a web bot hit.

You're staring to see people coming into public media making obvious, but shocking statements... Web bot technology is saying thsi is about to snowball and become a phenomena over the next several months.

(I'm not associated with the web bot people, I just follow their technology.)

Thu, 03/15/2012 - 10:38 | 2257693 Grifter
Grifter's picture

Clif High is a fucking idiot.

Fri, 03/16/2012 - 02:45 | 2260996 web bot
web bot's picture

I sort of agree with you. He's a bit of a quack... but don't dismiss the technology. There's some truth in the data... The problem is that he tries to interpret it.... as opposed to just presenting it.

Thu, 03/15/2012 - 10:28 | 2257651 lizzy36
lizzy36's picture

From Broadcast News:

What do you think the Devil is going to look like if he’s around? Nobody is going to be taken in if he has a long, red, pointy tail. No. I’m semi-serious here. He will look attractive and he will be nice and helpful and he will get a job where he influences a great God-fearing nation and he will never do an evil thing… he will just bit by little bit lower standards where they are important. Just coax along flash over substance… Just a tiny bit.

Now that the government is encouraging whistleblowers, my question is who the fuck is watching and whistleblowing on the government? The devil is always in the details.

Thu, 03/15/2012 - 10:40 | 2257671 Son of Loki
Son of Loki's picture

This is a good development; it's a way for the industry to monitor itself when regulators do not. When an industry is out of control, this is a normal development b/c some people actually have a conscience or someone close to them gets screwed and they get mad.

Thu, 03/15/2012 - 10:41 | 2257702 TuffsNotEnuff
TuffsNotEnuff's picture

Gawd, that's funny.

Thu, 03/15/2012 - 10:38 | 2257679 earleflorida
earleflorida's picture

"Incidentally, and as a reminder, ZeroHedge will always gladly publish without editing any of our readers... " 

BRAVO   tyler!!!

Thu, 03/15/2012 - 10:37 | 2257687 Bahamas
Bahamas's picture

Since banks own the media I don't think that stuff just leaks or people just are let speak. There must be some kind of strategy here, like manifacturing dissent

Thu, 03/15/2012 - 11:46 | 2257964 lazarus
lazarus's picture

As a commentor yesterday pointed out, maybe "I don’t know of any illegal behavior, but . . ." in the original op-ed was the whole point of the screed. 

Thu, 03/15/2012 - 10:37 | 2257690 AgShaman
AgShaman's picture

Screw that 'Gymbag' Cramer! (Damage Control Putz)

How he ever recovered from his silly little court jester routine with his "Bear Stearns Rant" should be proof positive of the cess pool that is CNBC.

His little tantrum should be viewed often. His mindless followers....are prime candidates to willingly accept a "JJ Cocktail"

Thu, 03/15/2012 - 10:40 | 2257696 TuffsNotEnuff
TuffsNotEnuff's picture

Cocktail sucker.

Thu, 03/15/2012 - 11:48 | 2257987 lazarus
lazarus's picture

Great original use of "gymbag," Ag! I usually use it to describe douchebags in my gym.

Thu, 03/15/2012 - 10:38 | 2257691 TuffsNotEnuff
TuffsNotEnuff's picture

Oh, no !!!How horrible.

Greg Smith is in it for money. He can make millions by exploiting Federal whistleblower suits dating to 2005 !!

Wow. Gee, whiz.

The line about "I find your lack of faith disturbing" (in these comments) is the real pay-off.

And this is really good for John McCain. And Tom Dewey. And Romney.

Thu, 03/15/2012 - 10:39 | 2257695 azzhatter
azzhatter's picture

You notice how the wall street boys are now trying to tar and feather NYT. NYT may suck but every once in a while they get one right

Thu, 03/15/2012 - 10:40 | 2257697 tony bonn
tony bonn's picture

"...Well, as the following Reuters article reports, 'whistleblowing' over corrupt and criminal practices on Wall Street is suddenly becoming the next growth industry..."

that's a positive development if it leads to indictments and prosecutions....otherwise its entertainment competition which dancing with the stars need not fear....

Thu, 03/15/2012 - 10:41 | 2257704 semperfi
semperfi's picture

Fear not the horse's head ye whistleblowers of fortune.  There's over 500 Million guns in this country and most of those guns are really really pissed off at the MOWS - MOTHERFUCKERS OF WALL STREET.  If the MOWS were smart, they'd start packing for their long term Carribean vacation.

Thu, 03/15/2012 - 14:22 | 2258734 CoolBeans
CoolBeans's picture

I wonder if some the big guys/gals are getting security as part of their job benefits.

For some of these people, I would imagine that they think twice before letting someone get a clear shot at them. 

Thu, 03/15/2012 - 10:44 | 2257708 use-ta-be-rich
use-ta-be-rich's picture

" Absolute Power" is when a person/organization/cult/Wallstreet/Hank Paulson... is given complete and total control and the final say in everything (as in a dictator). This kind of power "corrupts absolutely", meaning in totally and completely in every way.

Glad the media is reporting again

Thu, 03/15/2012 - 10:46 | 2257715 2discern
2discern's picture

Now would be the time for all whistle blowers in the obummer admin to start a chorus of the fraudulent tunes. It's amazing how Alinsky style leadership has priased lies and punished truth. Heros need to be revealed in politics. The corruption in DC is sooooooo connected to the toxic fraud of Wall St.

May a thousand Tylers infect the system purging the poison from free enterprise!

Thu, 03/15/2012 - 10:46 | 2257717 machinegear
machinegear's picture

These guys made MILLIONS from being nothing more than money changers to being fired with only a whistle to blow... and they STILL MAKE MILLIONS. BAHJESUS! Oh Lord... what did I do?

Thu, 03/15/2012 - 10:47 | 2257718 Clowns on Acid
Clowns on Acid's picture

"Incidentally, and as a reminder, Zero Hedge will always gladly publish without editing any of our readers' reports of criminal or less than legal activity witnessed at their financial employers."

Great news Tyler - How much does your whistleblowing policy pay out?

Here is a free one - Cramer is a court jester for the Fed and Obama bots.

Thu, 03/15/2012 - 10:51 | 2257728 Mike Cowan
Mike Cowan's picture

Weren't the Silver Bears the first whistle blowers?

Thu, 03/15/2012 - 11:00 | 2257767 bobola
bobola's picture


Off the subject; the short term Greek bond yields seem to have been frozen in place for the past few days.

Has trading been halted..??

Anyone know..?? 

Thu, 03/15/2012 - 11:00 | 2257768 Snakeeyes
Thu, 03/15/2012 - 11:08 | 2257793 mayhem_korner
mayhem_korner's picture




Rather than your occasional Friday 'Caption Contest', you might run a contest for the best title of Greg Smith's forthcoming book. 

Thu, 03/15/2012 - 11:10 | 2257798 tradewithdave
tradewithdave's picture

In search of a muppet-metric our research shows the business card indicator is declining relative to the success ratio for young associates use of the pick-up line "I work for Goldman." You can trade it under the symbol VPI..von Praag Index.

Thu, 03/15/2012 - 11:12 | 2257803 Madcow
Madcow's picture

Wall Street's business model and career path:

1. Develop toxic securites you know will blow up one day.

2. Sell those securities to your "customers"

3. Go short your "customers" - knowing they are infected with financial ebola

4. Lay low for a while - or flee the country for a bit so no angry mob can find you

5. Get a powerful job in the Governemnt and bring your "experience" to the public sector


Isn't there some rule or law that prevents - or at least discourages sociopaths, thieves, sex criminals, and cocaine fiends from running the country ?   Or is this just how we roll from now on - and i need to get used to it.  




Thu, 03/15/2012 - 11:26 | 2257857 junkyardjack
junkyardjack's picture

If only we could fight wars like that.  Maybe we can export our prisons to other countries like Iran and Afghanistan and go minimal on the security.  When it blows up it'll be their problem.  I think the banks are on to something here, Goldman Sachs for President

Thu, 03/15/2012 - 13:20 | 2257866 Widowmaker
Widowmaker's picture

Jim Cramer, validating his status as cocksucker for suckers.  Ya can't buy respect, Jim.  "Cocksucker, party of one?"

Smith obviously sees the writing on the wall, very smart man - now with limitless opportunity.

If Goldfuck Snacks had any fucking brains or competence the board would boot Lloyd and install Smith.   You won't see that, all to the validation of Smith's premise -- which is the point.

Moral margin calls are not welcome in the investment racket.

Thu, 03/15/2012 - 11:33 | 2257892 CoolBeans
CoolBeans's picture

Once again, Cramer has his head so far up his backside that all he sees is sh*t.  The only thing worse than an idiot is an idiot that is constantly spouting off.

The guy will call me or compliance geeks like me and we'll set up his investment advisory firm. 

He (Smith and those like him) will be successful in gaining clients and managed assets by divulging all of the brokerage "bad boy" secrets and sales missions - thereby gaining the allegiance of clients and enforcing his new-found belief in fiduciary standards.


Thu, 03/15/2012 - 11:34 | 2257897 Downtoolong
Downtoolong's picture

Jim Cramer announced that Greg Smith will never get a job on Wall Street again

Ditto on prior comments. There can be no doubt now that Cramer is anything but a paid mouthpiece for the Wall Street cartel. Everything he says has one of their axes behind it.


Thu, 03/15/2012 - 11:48 | 2257985 rustymason
rustymason's picture

Isn't it against the Tribe's religion to rat on each other?

Thu, 03/15/2012 - 12:21 | 2258229 carbonmutant
carbonmutant's picture

Mr. Smith has a client list of his own....

Thu, 03/15/2012 - 12:27 | 2258266 steelhead23
steelhead23's picture

You know, that's an interesting point.  I would never in a million years trust one dime of my money to Goldman, but if Mr. Smith sets up shop...  I'd sniff around.

Thu, 03/15/2012 - 12:35 | 2258319 carbonmutant
carbonmutant's picture

I have no doubt that he's getting a few offers...

Thu, 03/15/2012 - 14:19 | 2258717 CoolBeans
CoolBeans's picture

Can you imagine what is happening now?

The b/d is sending out the letters and calling the clients (the next hungry brokers in line are fighting over that client list) and their trying to conserve the biz -- and Mr. Smith is calling them.  The brokerage firm and the staff is telling the clients that Smith is a criminal, he's a liar, he's this and that.

Happens all day long.  Clients inevitably follow the one with whom they have the relationship, so he'll be just fine.

Then, he'll get hit with the brokerage firm's legal letter to cease and desist the client stealing...then the spitting match begins.  But he'll still have the clients on top of a mess o' new ones.

Thu, 03/15/2012 - 16:01 | 2259146 DavidC
DavidC's picture

Wouldn't this be the ultimate (and rich) irony, if Wall Street is not brought down by its own greed, lies and manipulation, or World events (Greece defaults and the markets carry on UP), but rather by its own people, the metaphorical ants rather than the elephants?


Fri, 03/16/2012 - 06:39 | 2261152 PMakoi
PMakoi's picture

Word can indeed "get around".  Hopefully, more and more.  Hopefully...

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