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.