Go Janet (Tavakoli)!
Last week a Goldman Sachs former employee Greg Smith wrote an op-ed for the New York Times explaining why he was resigning from Goldman Sachs. He alleged Goldman’s culture had recently deteriorated and that Goldman’s “toxic and destructive” culture isn’t doing right by its clients.
The puzzling thing about his article is that he claims this is new behavior for Goldman.
Yeah, that was my immediate take too. Where’s the news in something like this?
Goldman didn’t actually respond to Mr. Smith’s allegations. I’m guessing Goldman’s senior leaders, Lloyd Blankfein and Gary D. Cohn, didn’t flunk statistics. After all, they keep telling us they’re the best and brightest.
They are the best and brightest — at taking money from people who are gullible enough to believe they’re actually interested in anything other than maximizing their “profits.”
And since our Just-US system has been corrupted to the core, to the point that our last Treasury Secretary came from Goldman, what do you expect the outcome to be?
After all, as I have repeatedly observed if the penalty for bank robbery was that you had to give some (not even all) of the loot if you got caught, and nothing more, you could determine whether a building was in fact a bank by simply looking for the mile-long line of men in ski masks snaking out the door!
Janet goes on to describe one deal she was involved in and declined, noting:
The transformer wasn’t even worth the price of the child’s toy of the same name for the purpose they were suggesting. Sure, the SPE would have ultimately got paid and the bank would ultimately have received payment, but that wasn’t the point. The point was that the SPE did not have the resources to perform under the terms of its transaction with the bank. It could not pay on a timely basis, no matter how cleverly crafted the credit default swap confirmation.
Sounds a lot like selling toilet paper as “AAA” home loans, doesn’t it?
The more things change…..