Today’s Wall Street headline was the resignation of Goldman Sachs’ Head of Derivatives Business, Greg Smith. Smith, with help of the New York Times, publicized his reasons for resignation. The article describes how Goldman Sachs went from a respected firm to a reckless money maker without any concern towards any client. Smith describes Goldman Sachs as a company that is teaching and practicing business for all the wrong reasons. Goldman’s comment to the claims, “we do not share this opinion” and other popular phrases of no substance.
While all the claims are actually nothing new, Goldman Sachs’ activities are open secrets since the financial bubble busted, it should be mentioned that a huge number of banks in general work in that manner, not only since a couple of years. And there is no difference between an Investment Bank or a Retail Bank. Continue reading