Goldman Sachs (NYSE:GS) is supposedly embarrassed or maybe its bemused by a very recently resigned executive who is publicly slamming his former pay cheque as “ripping off clients” He also describes the place as toxic and destructive. Finally he claims the two senior officers have lost control over the culture. An interesting play on words. Why not just call them evildoers?
So after the headlines and the notoriety what is the next move? What is the next move in the Presidential election year? What is the move for clients that the executive serviced in Europe? Say I assume he had nothing to do with the Greece stuff.
The fellow is called Greg Smith and has about 12 years of deep dive experience. We all assume he has made enough money to retire on. Because we don’t think he will get a job in financial services again. Here are a few scenario’s he probably has not modelled.
Subpoena from the attorney general and or congressional committees. He has made many black claims. Surely there is malfeasance and wrong doing to back up these serious allegations. If there is Greg Smith needs to spill it and come clean. Allow the Karma Police to issue warrants and let the investigation begin. You cannot be making these public comments and assume nothing will come of it.
Would it not be extraordinarily funny if Goldman Sachs commenced an investigation and attempted to compel Greg Smith to divulge what he feels he knows. His refusal to co-operate would invoke the law of un-intended consequences and make him the pouting bad guy who wants to suck on his thumb in public and maybe get a book deal.
Goldman can easily take the high road and say “Whats this all about? Please let us know so we can fix it. Oh you wont talk. Then you are are just libelling and slandering and lets start an expensive lawsuit that will bankrupt you” The squid already has a rather bad public persona or some will think. So playing the role of the aggrieved party attempting to right wrongs my serve up karma that Greg Smith cannot handle.
So right now the only thing that maybe the whole world can agree on is that “Goldman Sachs acts in its own interests just like we all do. If that makes Goldman Sachs a corporate son-of-a bitch with a face eating squid so what of it. Most of us are sons-of-a bitch. Admittedly most of us do not have a face sucking squid. small point but true.
Greg Smith buckle up. The ride may have just started.
George Gutowski writes from a caveat emptor perspective.
- Goldman Sachs insider slams firm for ripping off clients (business.financialpost.com)
- Op-Ed Contributor: Why I Am Leaving Goldman Sachs (nytimes.com)
- Goldman Sachs continues its slippery ways. Results and maybe riots on Jan 18 $GS (financialskeptic.wordpress.com)
- Goldman Sachs Q1 earnings estimate boosted (business.financialpost.com)