The top lesson I learned before leaving Goldman in the wake of Enron was Goldman’s foremost internal policy is to protect Goldman. It’s also to protect the most powerful members. When cracks manifest in the corporate armor, those two policies are at odds.
The executives running Goldman are exceedingly wealthy, not least because when the firm faced its darkest hour and lowest stock price in years during the bank-created crisis of fall 2008, the government provided it billions of dollars in the form of cheap loans, FDIC debt guarantees, TARP, AIG make-wholes, and a late-night moniker change from investment bank to bank holding company, giving the firm access to excessive Federal Reserve aid.
Goldman's stock plunged 4% in 15 minutes upon news that their executives had retained lawyers, just as the market closed and erasing much of the S&P 500 rally that took place yesterday.
Goldman's stock plunged 4% in 15 minutes upon news that their executives had retained lawyers, just as the market closed and erasing much of the S&P 500 rally that took place yesterday.
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