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Goldman Sachs, the infamously glorified work place of almost everyone here, cannot seem to break any good news into the media. Of course, GS is known to have the brightest people and as much prestige as English royalty. Nonetheless, I will one up Meredith Whitney and claim that Goldman’s greatness is slowly coming to its knees. With only three resounding reasons to back my foresight, I am eager to hear your rebuttals:

1) As Dealbook reported last evening, about a dozen partners have put in their notice to retire from the firm- an unusually large number indeed. As widely speculated, these partners appear to be leaving in order to ensure that their severance packages will get paid in full while there is still some cash left in Goldman’s bank. In an effort to drastically cut costs, Goldman was already expected to let go about 10,000 employees by 2012. Recently, internal reports are signaling that layoffs might be further upped. With more layoffs on the horizon, one can only assume that its once incredible talent pool is grossly shrinking.

2) Last quarter, GS reported a $400 million plus loss, the first posted loss since 2008. The Volcker Rule alone is supposed to cost about $1 billion for banks next year, and obviously, GS will be apart of those losses. Along with regulatory uncertainty, I just have to imagine there is no one left in the world for GS to fuck and profit off. YTD GS is down 67%, and unless Merkel can pull out an epic miracle, the broader financial industry along with Goldman will only continue to tumble.

3) The bank is hugely vilified as one of the most symbolic figures of corporate greed of our time. With six Gulfstreams sitting in a New York hangar at any given time and a lavish corporate headquarters in New York, I keep picturing the gaudy office space Salomon Brothers built in London prior to their collapse. Between the GSelevator Twitter and Greece claiming that Goldman helped them cook their books, I cannot think of a more deserving ensemble of all this media disgrace.

Oh, how the mighty have fallen.

Comments (44)

  • Will Hunting's picture

    And with all that being sad, I would still gladly work there.

    "Look, you're my best friend, so don't take this the wrong way. In twenty years, if you're still livin' here, comin' over to my house to watch the Patriots games, still workin' construction, I'll fuckin' kill you. That's not a threat, that's a fact.

  • In reply to Will Hunting
    xxix's picture

    Will Hunting wrote:
    And with all that being sad, I would still gladly work there.

    ^ this.

    Man cannot remake himself without suffering, for he is both the marble and the sculptor. -Dr. Alexis Carrel

  • Nefarious-'s picture

    I really hope GS doesn't die because GS Elevator is a big part of my day.

    You're born, you take shit. You get out in the world, you take more shit. You climb a little higher, you take less shit. Till one day you're up in the rarefied atmosphere and you've forgotten what shit even looks like. Welcome to the layer cake, son.

  • In reply to Nefarious-
    bfin's picture

    Nefarious- wrote:
    I really hope GS doesn't die because GS Elevator is a big part of my day.

    This.

    The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee

    WSO is not your personal search function.

  • superninja's picture

    Goldman is like the Yankees.

    Sure they are hatable and portrayed as dubious, but you would love having them on your side.

    Once banks and Europe stop being on TV 24/7 I think things will look up for them PR wise.

  • illiniPride's picture

    ^^ Thats what I thought when I saw this. If a bunch of junior guys are leaving, a few senior ones will have to as well. Besides, goldman will eventually shed "bank holding company" status so the Volcker rule wont apply.

    Leadership can be defined in two words: "Follow Me"

  • In reply to houseofcards
    UFOinsider's picture

    houseofcards wrote:
    nate1749 wrote:
    WallStreetOasis.com wrote:
    good time to buy the stock?

    based on point #1 seems like it might be a good time to short it instead. That many people walking away seems like a sex scandal or they know something everyone else doesn't.

    http://dealbook.nytimes.com/2011/11/14/a-wave-of-p...

    Article made it sound like they were victims of cost-cutting and the general shrinkage in headcount. As the article describes, low-performing partners are culled to make room for new ones and keep the size of the partnership pool down. "Retiring" doesn't actually mean they chose to leave...it's probably a euphemism for being forced out nicely.


    Bingo. GS periodically goes through these phases and alwas pulls through just fine.

    Get busy living

  • nate1749's picture

    Well if they are politely forcing an above average amount of people out, wouldn't that mean that an above average amount are underperforming?

    Either way - forced out or leaving on their own good will - a short seems like it holds more water presently.

  • In reply to gubbier
    duffmt6's picture

    gubbier wrote:
    Any thoughts as to which will be the 3 most prestigious banks 10 years from now?

    Salomon Brothers

    "For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."

  • In reply to duffmt6
    UFOinsider's picture

    duffmt6 wrote:
    gubbier wrote:
    Any thoughts as to which will be the 3 most prestigious banks 10 years from now?

    Salomon Brothers


    MF GLOBAL

    Get busy living

  • In reply to milehigh
    seabird's picture

    milehigh wrote:
    UFOinsider wrote:
    duffmt6 wrote:
    gubbier wrote:
    Any thoughts as to which will be the 3 most prestigious banks 10 years from now?

    Salomon Brothers


    MF GLOBAL

    Barings

    1640's era Dutch man: The bank of Amstredam. What could go wrong?

    “...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.”

    - Schopenhauer

  • B-School Bound's picture

    Goldman is having a tough time securing top talent at b-schools these days. Most of the rock stars who would have likely headed to GS in years past are now heading to Evercore, Perella, and the like. Every dog has its day, Goldman had a great run while it lasted, but their moment in the sun is turning to a close.

    Sort of like Brown Brothers Harriman a century ago, and now you never even hear of them. Seems like to many people fail to understand that past results are not an indicator of future results. Wayne Gretzky once said that he tried to skate to where the puck was going to be, rather than where is was . . . . sounds like he had the right idea.

  • In reply to gubbier
    cplpayne's picture

    gubbier wrote:
    Any thoughts as to which will be the 3 most prestigious banks 10 years from now?

    Maybe a good guess would be Perella, Lazard, and Evercore.......

    or GS, MS (after giving up bank holding statis) and Merrill post BAML split?

    "One should recognize reality even when one doesn't like it, indeed, especially when one doesn't like it." - Charlie Munger

  • In reply to B-School Bound
    UFOinsider's picture

    B-School Bound wrote:
    Most of the rock stars who would have likely headed to GS in years past are now heading to Evercore, Perella, and the like.

    GOOD, less competition for me. I see the boutique fad passing within a decade and only a few hardcore veterans really lasting in their current capacity...like Lazard and Rothchild. A lot of people who go to these places are infatuated with the high profile of certain units or are just chasing a trend, but they don't realize that these firms do not have the same brand name recognition outside of the industry.

    Some of the MMs may move into the bulge category, but more likely they'll stay where they are or be aquired when the partners want to cash out. The boutiques at best are merely filling in the voids created by the recession and the current regulatory environment and are more likely to revolve around a handful of people [Perella, Moelis, etc...] than have any real brand. Rest assured that the bigger banks will regain their dominance after this period of time: I'm inclined to think that GS will be among those that emerge...but I could very well be wrong.

    FOR THE RECORD, I'm at a MM and happy there...I don't want to be misunderstood as hating on smaller firms, as they have a lot of upsides. But if I ever leave the industry for a different field or start a business, BB alum networks will be far more useful than the limited body count (and purse) of smaller firms. If I'm still in finance in a decade, someone shoot me.

    Get busy living

  • In reply to B-School Bound
    Bernankey's picture

    B-School Bound wrote:
    Goldman is having a tough time securing top talent at b-schools these days. Most of the rock stars who would have likely headed to GS in years past are now heading to Evercore, Perella, and the like. Every dog has its day, Goldman had a great run while it lasted, but their moment in the sun is turning to a close.

    Sort of like Brown Brothers Harriman a century ago, and now you never even hear of them. Seems like to many people fail to understand that past results are not an indicator of future results. Wayne Gretzky once said that he tried to skate to where the puck was going to be, rather than where is was . . . . sounds like he had the right idea.

    Goldman makes the majority of its money from trading not banking...any monkey can model DCF..not every monkey can take a pile of cash and make it grow

  • cplpayne's picture

    "One should recognize reality even when one doesn't like it, indeed, especially when one doesn't like it." - Charlie Munger

  • Kenny Powers's picture

    My drinkin' problem left today, she packed up all her bags and walked away.