Friday, March 16, 2012

'Why I am leaving Goldman Sachs'

I imagine this letter written by a former Goldman Sachs ED for the NYT is now reprinted in every worthy newspaper throughout the world. Such is the Zeitgeist.

However Goldman wouldn't be worried about how their clients feel. Rightly or wrongly too many of them believe they are not stupid. Never mind they actually were often clueless. Their image and ego is at stake here. This is the stupidity of it all in the financial world.

Would GIC or Temasek admit that they had been conned by Goldman? Massive loss of face. Also we will never know. There isn't enough transparency and never will until they are dead institutions.

James Dimon at JP Morgan has been astute at warning his bankers not to capitalize on Goldman temporary misery.

Goldman will not go out of business because clients flee from them. That's naive. They can go out of business the usual way, i.e., like Bear Stearns, Merrill, Lehman. Alternatively but less likely the SEC, the Fed, DOJ close them down, Salomon Brothers, LTCM script.

Be wise and understand the fire. If you can't understand it, stay away from it. Really what you do not know can hurt you.

No comments:

Post a Comment