Goldman Roiled by Op-Ed Loses $2.2 Billion for Shareholders [View all]
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Source: Bloomberg via Washington Post
March 15 (Bloomberg) -- Goldman Sachs Group Inc. saw $2.15 billion of its market value wiped out after an employee assailed Chief Executive Officer Lloyd C. Blankfein’s management and the firm’s treatment of clients, sparking debate across Wall Street.
The shares dropped 3.4 percent in New York trading yesterday, the third-biggest decline in the 81-company Standard & Poor’s 500 Financials Index, after London-based Greg Smith made the accusations in a New York Times op-ed piece.
Smith, who also wrote that he was quitting after 12 years at the company, blamed Blankfein, 57, and President Gary D. Cohn, 51, for a “decline in the firm’s moral fiber.” They responded in a memo to current and former employees, saying that Smith’s assertions don’t reflect the firm’s values, culture or “how the vast majority of people at Goldman Sachs think about the firm and the work it does on behalf of our clients.”
Former Federal Reserve Chairman Paul Volcker, 84, whose “Volcker rule” would limit banks like New York-based Goldman Sachs from making bets with their own money, called Smith’s article “a radical, strong” piece. “I’m afraid it’s a business that leads to a lot of conflicts of interest,” Volcker said at a conference in Washington sponsored by the Atlantic magazine.
Read more: http://washpost.bloomberg.com/Story?docId=1376-M0WH081A1I4H01-1J9RKCOP50FETDN5HDJHDN150C
Two thoughts reading this:
One, this is how the corporatocracy dies--one whistleblower, hacker, or monkey wrencher at a time.
Two, can this guy Smith write follow up op-eds until Goldman goes bankrupt?
Okay, maybe three thoughts: can this shame Obama into prosecuting Blankfein and other top execs?
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