Greg Smith's F-U to Goldman

Eddie Braverman's picture
Rank: The Pro | banana points 21,149

Mod note: Best of Eddie, this was originally posted on 3/14/12.

Wow. Goldman Sachs executive director Greg Smith, who is the head of US equity derivatives in Europe, the Middle East, and Africa resigned today with a huge "f**k you" to Goldman in the New York Times:

Why I Am Leaving Goldman Sachs

Citing the toxic culture fostered by Lloyd Blankfein and Gary Cohn, Smith finally got fed up and quit.

It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as "muppets," sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God's work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don't know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client's goals? Absolutely. Every day, in fact.

You young guys who get moist at the mere thought of working for Goldman Sachs would do well to take this article to heart.

Comments (121)

Mar 14, 2012

DealBreaker is absolutely gonna annihilate this guy on the Bronze Medal in Table Tennis at the Maccabiah games line.

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Mar 14, 2012
Nouveau Richie:

DealBreaker is absolutely gonna annihilate this guy on the Bronze Medal Table Tennis at the Maccabiah games line.

LOL.

So true. A meatball right into Bess's wheelhouse...

Mar 14, 2012

The culture he's talking about sounds very similar to Salmon Brothers.

Just out of curiosity, did the guy just scuttle the rest of his career? Or will every bank want him now sort of as a PR stunt for the bank (i.e. Bank cares about integrity)?

Mar 14, 2012
lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

Just out of curiosity, did the guy just scuttle the rest of his career? Or will every bank want him now sort of as a PR stunt for the bank (i.e. Bank cares about integrity)?

Quite obviously the latter...

Mar 14, 2012
GekkotheGreat:
lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

Just out of curiosity, did the guy just scuttle the rest of his career? Or will every bank want him now sort of as a PR stunt for the bank (i.e. Bank cares about integrity)?

Quite obviously the latter...

Hey why do you think this is 'quite obvious' ? I've heard that people suspect he had an agenda in writing this, but there were several theories about what it might have been, ie, maybe he was screwed over by someone in the company, in which case he would probably stay in finance. But maybe he wants to enter politics? Is that an outlandish idea?

Play games and get a finance job or internship with ConnectCubed

Mar 14, 2012
lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

Yum, salmon.

I still would work for GS in a second.

Mar 14, 2012
lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

Mmmm...salmon brothers. Sounds yummy, smoked I hope.

Mar 14, 2012
lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

More like Drexel Burnham Lambert.

Just out of curiosity, did the guy just scuttle the rest of his career? Or will every bank want him now sort of as a PR stunt for the bank (i.e. Bank cares about integrity)?

Short of getting sent to jail or making the vast majority of people think you should be in jail, it's practically impossible for an MD at a top five firm to scuttle his career. Has he scuttled it at Goldman Sachs? Yes.

Mar 14, 2012
IlliniProgrammer:
lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

More like Drexel Burnham Lambert.

Just out of curiosity, did the guy just scuttle the rest of his career? Or will every bank want him now sort of as a PR stunt for the bank (i.e. Bank cares about integrity)?

Short of getting sent to jail or making the vast majority of people think you should be in jail, it's practically impossible for an MD at a top five firm to scuttle his career. Has he scuttled it at Goldman Sachs? Yes.

Agreed-it's all about perception. Some firm that values its perceived integrity relative to GS will scoop him up in a second (my money's on JPM, Dimon knows how to work a crowd.).

Mar 14, 2012
IlliniProgrammer][quote=lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

More like Drexel Burnham Lambert./quote]

That reminded me of a recent tweet at gselevator:
Without question, Michael Milken has done more for humanity than Mother Teresa.

Anyway, I think that's a bit over the top, DBL was doing illegal stuff and they all ended up in jail. There's a big difference between unethical and illegal.

I agree on the Dimon comment. He's very good with this shit, I wouldn't be surprised if he gets hired like next week.

Mar 14, 2012
lime1945:

The culture he's talking about sounds very similar to Salmon Brothers.

Just out of curiosity, did the guy just scuttle the rest of his career? Or will every bank want him now sort of as a PR stunt for the bank (i.e. Bank cares about integrity)?

It's a shame Salmon Brothers collapsed after that migration of grizzly bears came through.

Mar 14, 2012

I read Stanford scholarship and finalist for Rhodes Scolarship and then...bronze medal in table tennis at the Jewish olympics.

I can still see GS fanboys reading this and still thinking "so what...what a p**sy". You forget how important the work environment is until you get there.

Kudos to Greg that he got out rather than saying "this sucks but I'll leave after my next bonus...or the one after that".

Mar 14, 2012
Rumplesmoothspin:

Kudos to Greg that he got out rather than saying "this sucks but I'll leave after my next bonus...or the one after that".

This is probably the opposite of the truth. You can't tell me with a straight face that over the past 6 years, Goldman Sachs just spontaneously morphed into a moral-less beast that is now engulfing the global economic system. He made damn sure he sat through the boom times in 2005-2008, sat through a couple of tougher years thereafter, and then after the awful bonus season across capital markets just finally said fuck it.

But as the first one to leave a sinking ship, he creates the image that he is some sort of standard for ethics and morals, when in fact there is no way anyone on this board, or most anywhere else knows if that is truly the case.

Mar 14, 2012

Respect for him, not everybody have the balls to follow the ethics these days... Sidney Weinberg is probably turning in grave right now, sending ghosts to haunt on Lloyd...

Mar 14, 2012

I interned at GS this past summer...sounds pretty accurate sadly

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Mar 14, 2012
goldmansachsinvestmentbanker:

I interned at GS this past summer...sounds pretty accurate sadly

I've heard the same thing from people.

Mar 14, 2012

And so the parodies have begun:

Why I am leaving the Empire, by Darth Vader

Greg Smith is Internet famous in less than three hours. Impressive.

Mar 14, 2012

I think the SB analogy is pretty accurate.

However, this doesn't necessarily mean that GS isn't the right place to start your career in. It's still the most "prestigious" place to be, so even if they decline you can just leave and you'll probably be better off having GS on your resume.

Mar 14, 2012

Fantastic piece, even if most Wall Street guido idiots will blow it off. And you could generally extrapolate this over the entire BB space right now. It's sad that the financial meltdown really didn't change much at all.

Mar 14, 2012

Another whining Jew, so what's new ?
HE MAKES MILLIONS FOR 12 YEARS AND THEN BAILS OUT...
What a piece of shit !
As if Investment Banking was ever about helping the client. IT WAS ALWAYS ABOUT RIPPING OFF THE CLIENT.

Mar 14, 2012
Gate_Crasher:

Another whining Jew, so what's new ?
HE MAKES MILLIONS FOR 12 YEARS AND THEN BAILS OUT...
What a piece of shit !
As if Investment Banking was ever about helping the client. IT WAS ALWAYS ABOUT RIPPING OFF THE CLIENT.

100%....TRUTH
What a pussy, makes all this money "advises clients who are worth a total of $1 trillion" blah blah blah....Since Day 1, Wall St. was about making money first and foremost. That's just the nature of the beast. This guy is a puss looking for attention.

Mar 15, 2012

deleted.

=-)

Money Never Sleeps? More like Money Never SUCKS amirite?!?!?!?

Mar 14, 2012

Good article... Very Jerry Maguire-esque...

Mar 14, 2012

Interesting read. Not sure if a NYT op-ed is the best way to go, but if he wanted to become instantly famous in the world of finance, touche.

I believe everything he has to say. Hopefully Goldman can turn around that culture deterioration. And hopefully I can get into a good buy-side firm and not have to worry about it.

Mar 14, 2012

maximumrespect

My GS friends all want to leave, I'm not at all surprised.

When do we get the 'Greg Smith' book/film?

Just Do It

Mar 14, 2012
maximumlikelihood:

My GS friends all want to leave, I'm not at all surprised.

Bullshit.

Mar 14, 2012

I bet he ends up on the buyside, maybe somewhere like PIMCO... The article reminded me a little about John Knee's book, the Accidental Investment Banker. He was also at GS and is now at Evercore.

Mar 14, 2012

Wow

Mar 14, 2012

So Goldman is now 90s Morgan and Morgan is now 90s Goldman?

"All I've ever wanted was an honest week's pay for an honest day's work."

Mar 14, 2012

He may call them callous, I call them generators of shareholder wealth.

The difference between successful people and others is largely a habit - a controlled habit of doing every task better, faster and more efficiently.

Mar 15, 2012

..

Money Never Sleeps? More like Money Never SUCKS amirite?!?!?!?

Mar 14, 2012

Wait, where did he go to undergrad?

But seriously, I like how he stuffed his entire resume in there. Looks like he isn't as immune from the dbag culture as he thought...

Mar 14, 2012
Prim.er.ate:

Wait, where did he go to undergrad?

But seriously, I like how he stuffed his entire resume in there. Looks like he isn't as immune from the dbag culture as he thought...

That's not Goldman culture; that's Wall Street culture.

The scary thing is that you come here, you notice it, you hate it. Then you get used to it. Then you start to become it if you're not careful.

I just realized I'm paraphrasing Morgan Freeman in Shawshank Redemption. Us bankers are institutionalized in our own sort of way.

Mar 14, 2012

He won the Bronze Medal in Table Tennis at the Maccabiah games ->the ontly thing I didnt know before reading this!

Mar 14, 2012

if investors are stupid enough to buy products they dont understand....

Mar 14, 2012
dogboo:

if investors are stupid enough to buy products they dont understand....

Remember... 99% of people are "stupid"

Mar 14, 2012

He had to explain his background somewhat to establish credibility, though he went over the top (ping pong).

Mar 14, 2012

As long as gs has that culture I will never work for them. I value my integrity too much to act in such atrocious manner towards my clients. Kudos to Greg for having the courage to leave, and speak against it.

Mar 14, 2012
upod01:

As long as gs has that culture I will never work for them. I value my integrity too much to act in such atrocious manner towards my clients. Kudos to Greg for having the courage to leave, and speak against it.

cough bs cough

Mar 14, 2012

I know somebody who did an iBanking internship who overheard and MD on the phone, talking (she believes) to a potential client. It sounded like the MD was trying to pitch an M&A deal to an executive at the client company.

The MD said something like "Think of it as a house. Think of it as a boat."

M&A rarely creates value for the client company. It helps executives at the company empire-build and land big bonuses. There's a big conflict of interest involved

Mar 14, 2012
apm412:

I know somebody who did an iBanking internship who overheard and MD on the phone, talking (she believes) to a potential client. It sounded like the MD was trying to pitch an M&A deal to an executive at the client company.

The MD said something like "Think of it as a house. Think of it as a boat."

M&A rarely creates value for the client company. It helps executives at the company empire-build and land big bonuses. There's a big conflict of interest involved

This is one of those academic arguments that doesn't really make any sense. Do you really believe that M&A rarely creates value? Do you really believe that shareholders are just stupid and allow 'executives to empire build'? Its just not true. Spend some time in the industry and you'll be able to see through your professor's rants.

Mar 14, 2012
DoddFrank:
apm412:

I know somebody who did an iBanking internship who overheard and MD on the phone, talking (she believes) to a potential client. It sounded like the MD was trying to pitch an M&A deal to an executive at the client company.

The MD said something like "Think of it as a house. Think of it as a boat."

M&A rarely creates value for the client company. It helps executives at the company empire-build and land big bonuses. There's a big conflict of interest involved

This is one of those academic arguments that doesn't really make any sense. Do you really believe that M&A rarely creates value? Do you really believe that shareholders are just stupid and allow 'executives to empire build'? Its just not true. Spend some time in the industry and you'll be able to see through your professor's rants.

Dude a majority of M&A deals fail...

Mar 14, 2012

Greg got dickslapped and now is crying foul...seriously dawg? Which fucking company out there cares about its customers??

Pepsi and Coke put cancerous shit in their products : http://abcnews.go.com/blogs/health/2012/03/09/coke...

Apple has fucking infants making iphones: http://www.dailymail.co.uk/news/article-1254221/Ap...

And this guy is saying Goldman's corrupt?? Buddy everyone's fucking corrupt...welcome to the system bud

Mar 15, 2012
go.with.the.flow:

Greg got dickslapped and now is crying foul...seriously dawg? Which fucking company out there cares about its customers??

Pepsi and Coke put cancerous shit in their products : http://abcnews.go.com/blogs/health/2012/03/09/coke...
Apple has fucking infants making iphones: http://www.dailymail.co.uk/news/article-1254221/Ap...
And this guy is saying Goldman's corrupt?? Buddy everyone's fucking corrupt...welcome to the system bud

strong correlation between name and what was written

Mar 14, 2012

Is this really anything new?

Mar 14, 2012

I make so much fucking money that I can brag in the New York Times about my moral superiority and table tennis skills. I'm such a baller, man. I went to Stanford, then got hired by Goldman Sachs. I'm so beautiful that I was featured in our campus recruitment video. I hate Goldman Sachs because I know the culture. I was There. I know these douchebags. And, I decided to quit because I'm better than all of them and all of you.

Signed, Glorious Douchebag

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Mar 14, 2012

What he says about GS may be true, but why didn't he leave during 2008? Why wait another four years? I bet he probably heard he was getting the axe, decided to quit before they could fire him, and wrote the article to spite them. I mean, Goldman is definitely trying to cut costs, so who better to cut than some Exec. Director that they have to shell out millions to every year?

And what the fuck is with all the bragging he does? Israeli table tennis, Rhodes Scholar Finalist...?

What a tool.

Mar 14, 2012

Notice how this whole thing is about doing right by your clients and now the guy is opening his own firm? NY Times OpEd is the best ad space you could never buy.

If I had asked people what they wanted, they would have said faster horses - Henry Ford

Mar 14, 2012

How is this article news?

Mar 14, 2012
IlliniProgrammer:

How is this article news?

I agree. It's not like clients are some naive entities that don't realize that Goldman is making some money off of them. What a travesty. Also, does he actually think that he got promoted and chosen for recruitment videos and shit for reasons more important than the fact he made them money?

This entire op-ed is stating the obvious, but it's still a PR nightmare because someone actually addressed what we already knew to exist

Mar 14, 2012
IlliniProgrammer:

How is this article news?

It's more the fact that someone from 'the inside' came out and railed against the big bad bank while people are protesting these very issues in a park not far from 'where it all went down'. Gotta sell papers.

If I had asked people what they wanted, they would have said faster horses - Henry Ford

Mar 14, 2012

happypants, are you sure he's setting up his own shop and not joining another firm?

Mar 14, 2012
Mar 14, 2012

Yeah this is not exactly shocking news, more like what the public assumes the culture is like at every single bank.

Still interesting to see someone at his level torch those bridges though

Mar 14, 2012

Dear Goldman Sachs,

You're Fired!

Best,
Kermit

Mar 14, 2012

Now somebody set up a parody Twitter account for him:

https://twitter.com/#!/MuppetGregSmith
Pretty funny.

Mar 14, 2012

Wait...Goldman Sachs is unethical? Shocking. Simply shocking.

Yawn. Back to work.

Mar 14, 2012

A person familiar with the matter said Mr. Smith's role is actually vice president, a relatively junior position held by thousands of Goldman employees around the world. And Mr. Smith is the only employee in the derivatives business that he heads, this person said. - WSJ

If I had asked people what they wanted, they would have said faster horses - Henry Ford

Mar 14, 2012

Bill Cohan: Greg Smith is "toast" on Wall Street:

Mar 14, 2012

Story didn't make it on to today's WSJ issue.
shucks :(
Thanks for the post!

Mar 14, 2012

Hold on... a trading counterparty is trying to make money? That is preposterous!

/sarcasm

Mar 14, 2012

Well here's a great way to fuck your career up. I'm sure everyone else on Wall Street is just dying to have him working for them. What a dickhead.

As far as the op ed goes, you mean bankers don't want to make money? Wow! Tell me something I didn't know.

Mar 14, 2012

Well here's a great way to fuck your career up. I'm sure everyone else on Wall Street is just dying to have him working for them. What a dickhead.

As far as the op ed goes, you mean bankers don't want to make money? Wow! Tell me something I didn't know.

Mar 14, 2012

Did anybody notice how Goldman says fuck you to the whole world?

Have you seen their NJ office at 30 Hudson Street? It looks like a giant dick coming out of the ground. I just noticed while going to work today. Take a look:

http://nopests.com/blog/wp-content/uploads/2010/06...

Doesn't it look like a giant "fuck you' ?

Mar 14, 2012

"A person familiar with the matter said Mr. Smith's role is actually vice president, a relatively junior position held by thousands of Goldman employees around the world. And Mr. Smith is the only employee in the derivatives business that he heads, this person said. - WSJ"

hahhahahaa

Mar 14, 2012

"There are three ways to make a living in this business: be first, be smarter, or cheat."

Mar 14, 2012

A VP at Goldman after 12 years? I doubt it. if you're still at that level after 12 years, you'll probably have already been fired as part of the 5/10% low performers.

But Rhaegar fought valiantly, Rhaegar fought nobly, Rhaegar fought bravely.

And Rhaegar died.

Mar 14, 2012

Why I Am Applying for an Executive Director Position at Goldman Sachs

http://www.minyanville.com/sectors/financial/artic...

My proudest moments in life -- getting accepted to Brooklyn College, passing Intro to Chemistry, and competing in countless Wiffle-ball and roller-hockey games, known as the Brooklyn Olympics -- were achieved through pure awesomeness, with no shortcuts.

"Rage, rage against the dying of the light." - DT

Mar 14, 2012

He looks like Blankfein's younger brother.

Mar 14, 2012

Take a piss on this fucker on sight

Mar 14, 2012

This guy is a tool. He is a VP after 12 years, was bitter about how his career was going, so decided to try to up his profile to launch something new by doing this...dont be shocked to see him on talk shows or with a book coming out soon. What did he just realizes that this business is dirty after 12 years? cmon man....

Mar 14, 2012
Bondarb:

This guy is a tool. He is a VP after 12 years, was bitter about how his career was going, so decided to try to up his profile to launch something new by doing this...dont be shocked to see him on talk shows or with a book coming out soon. What did he just realizes that this business is dirty after 12 years? cmon man....

Consider, though, that no one would have given this story a second thought had he brought this up earlier in his career, when he was an analyst/associate. He's no saint, but if you want to be a whistleblower, the logical thing to do is wait until you're senior enough that people will listen, but still sure that your career is about done.

Mar 14, 2012

Anyone saying this guy's career is finished has no understanding of marketing. Anyone who thinks that this is not news, I don't know what the hell to tell you, this is a pretty significant blow to the company's reputation. Business is how people perceive your company, and while rumors and speculation of Goldman being a band of crooks is fairly bad, a 2 page letter from a senior member completely vilifying the business is far worse.

As it stands Goldman is on over 120 years of built reputation. The only reason Goldman has prestige in its name is a result of how the business was run in that duration.In the last 5 years it's beaten away a lot of that respect and now its running on residuals.

And yes we all realize finance as practiced in America from the 20th century on is a business of parting fools from their money, but you definitely need the fools trust before you can get to the parting bit.

Mar 14, 2012
jktecon:

Anyone saying this guy's career is finished has no understanding of marketing. Anyone who thinks that this is not news, I don't know what the hell to tell you, this is a pretty significant blow to the company's reputation. Business is how people perceive your company, and while rumors and speculation of Goldman being a band of crooks is fairly bad, a 2 page letter from a senior member completely vilifying the business is far worse.

As it stands Goldman is on over 120 years of built reputation. The only reason Goldman has prestige in its name is a result of how the business was run in that duration.In the last 5 years it's beaten away a lot of that respect and now its running on residuals.

And yes we all realize finance as practiced in America from the 20th century on is a business of parting fools from their money, but you definitely need the fools trust before you can get to the parting bit.

Their reputation with their clients isn't THAT correlated to their reputation with the general public though. Of course their reputation with the general public matters too, because it could enter the political field, but their reputation with their clients is far more important

Mar 14, 2012

This reminds me of Mad Men... When they couldn't get a cig company, Don wrote a piece in the newspaper declaring they didn't want to deal with companies that killed people anymore...

What a load of bs, if it actually mattered that much to him, why did he stick around for so long. Now that he's made a good living for a few years, he comes out with this crap..

I don't accept sacrifices and I don't make them. ... If ever the pleasure of one has to be bought by the pain of the other, there better be no trade at all. A trade by which one gains and the other loses is a fraud.

Mar 15, 2012

Sounds like he's trolling the troll.
Greg is merely raising the stakes on the game.
He'll prolly end up on top.

Mar 15, 2012

This guy is a dick. He talks about GS as if they were the devil's friends and doesn't mention that they treated him like a brother (who gets paid millions).

The Four E's of investment
"The greatest Enemies of the Equity investor are Expenses and Emotions."- Warren Buffet

    • 1
Mar 14, 2012

Greg Smith's op-ed is nothing more than a cranky banker's sex tape. Full argument here: http://www.wallstreetoasis.com/forums/why-greg-smi...

Play games and get a finance job or internship with ConnectCubed

Mar 15, 2012

Parasitic culture is everywhere in all lines and levels of business. It is cut throat anywhere you go, and your average working man is just as corrupt or greedy as any banker. And it is sustainable as long as you 1)"dont get caught" 2)continue making profit 3)destroy all your competition. That is the way it has been since life began on earth.

It's sad for GS, but they are in the wrong position at the wrong time in history. And given their situation, there is no alternative but to continue their current course. There is just no way that the short-term management at GS will sacrifice their short-term bonuses for the good of the long-term life of the company.

Mar 15, 2012

goldman stopped giving a shit about even pretending to serve its customers when it discovered the fed-treasury arb money machine.

Mar 14, 2012

Oh, and Fuck GS !

Mar 15, 2012

Checked with a buddy of mine in BB S&T in London. He said there's rumors floating around that this dude has been gunning for promotion for 3 years now and is disgruntled because he got rejected again. The rest of this moral superiority is just bullshit apparently. Who knows how much truth there is to this, but it seems far more likely than his assertion that Goldman's culture suddenly transformed from client focused altruism to ripping off the same clients.

Mar 14, 2012

LOL at the NY Times (The 'Paper of Record') getting hoodwinked by this dudes title and thinking he was a big shot. Way to do your research.

If I had asked people what they wanted, they would have said faster horses - Henry Ford

Mar 15, 2012

Eddie! We had this guy beat by a year on this whole derivatives business!

Mar 14, 2012
Omer Rosen:

Eddie! We had this guy beat by a year on this whole derivatives business!

Yeah, that was a great post (click here for those of you who missed it)... I'm still surprised at the level of GS support and apologetics on this thread... I know WSO is full of fanboy's but come on. Ripping off your clients (and fraud) is not something we should encourage or rationalise. Where's the integrity?

I've been at firms where I've been aligned with my clients/investors and others where I wasn't. There are structural reasons for misbehaviour (short term outlooks, transaction as opposed to relationship focus, etc...), but personal integrity is still a big deal no matter what your organisational constraints.

I suppose its difficult for the highschoolers/college guys on WSO to understand... This isn't a video game or simulation... You only have one reputation.

Mar 14, 2012
Relinquis:
Omer Rosen:

Eddie! We had this guy beat by a year on this whole derivatives business!

Yeah, that was a great post (click here for those of you who missed it)... I'm still surprised at the level of GS support and apologetics on this thread... I know WSO is full of fanboy's but come on. Ripping off your clients (and fraud) is not something we should encourage or rationalise. Where's the integrity?

I've been at firms where I've been aligned with my clients/investors and others where I wasn't. There are structural reasons for misbehaviour (short term outlooks, transaction as opposed to relationship focus, etc...), but personal integrity is still a big deal no matter what your organisational constraints.

I suppose its difficult for the highschoolers/college guys on WSO to understand... This isn't a video game or simulation... You only have one reputation.

I agree with your post in spirit but you have to understand IB's have dual roles...'market makers' and then 'M&A'...in trading banks are the casino while in M&A you have to make the best deal to get the most commission.

This guy was in the derivatives group so his point of view is from a traders perspective and should not account for the M&A group.

Also your clients are not normal joes but pension funds and hedge funds. Both are looking to rip each other off. Thats been how it has been going for ages. This is happening across the street, but we all know GS is overaggressive and in bed with the regulators. I am not defending GS here, I am just saying "dont hate the playa , hate the game"

Mar 14, 2012
Mar 15, 2012

People should thank this guy for having the balls to come out and give a rare and refreshing view. Instead, they're focused on making a big deal about minor things with his character, position, earnings, and so on to avoid participation in the real discussion which is Goldman Sachs. The worst so far have been the quotes from "career coaches". Yeah, he committed career suicide in the financial industry, thanks for your shitty obvious advice.

If he was given the title of Executive Director outside of New York, then he's an executive director. Oh he's actually a "vice president" in New York? Why does that title difference even matter? It's not like he's a 1st year analyst. 12 years at Goldman Sachs is enough time to give a serious opinion on what he's seen at the company since he started. Too bad a lot of people in the interest of being politically correct and self-serving don't take honesty seriously.

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Mar 14, 2012

GOLDMAN HEIR SPEAKS: Greg Smith Was Right, They Ruined My Great-Grandfather's Company

http://www.businessinsider.com/henry-goldman-iii-o...

Mar 15, 2012
Edmundo Braverman:

GOLDMAN HEIR SPEAKS: Greg Smith Was Right, They Ruined My Great-Grandfather's Company

http://www.businessinsider.com/henry-goldman-iii-o...

Oooooh snap!

Mar 15, 2012

I think we all need to bear in mind that clients of investment banks can be just as cutthroat, manipulative, and banal as the investment bankers. A lot of Goldman clients have big money, and they know it. They're both trying to get the most they can out of the other; it's called sales. It isn't like negotiating your cell phone bill with the Verizon guys.

Metal. Music. Life. www.headofmetal.com

Mar 14, 2012

Would READ HIS BOOK !

Mar 16, 2012

Although this guy may have just ruined his career he did a good thing by calling them out. There is a saying that goes doing nothing in the face of evil is evil. I'm glad he told the truth and I hope he finds a more rewarding career soon.

 

 

Sometimes people just need to stand up against a casino-en-ligne and tell the truth instead of cowering down and remaining quiet because you are afraid of losing your career.

Mar 14, 2012

http://www.forbes.com/sites/stevedenning/2012/03/1...
very interesting article no wonder tech companies have such die hard followers

Mar 16, 2012

Love the Mad Men comparisons. I have no doubt in my mind that this stunt was inspired by Don Draper.

This guy fancies himself a business renegade and this was much more about self-promotion than integrity. It's not that hard to "take a stand" when you'll just fall backwards into a pile of money if it backfires.

Mar 16, 2012

Is it just me or occupy dummies are signing up on WSO to hate on Goldman?

Mar 14, 2012

its just you... very few of us are lucky enough to be on the right side of a trade with the goldmans sachs.... its a great feeling (i love it).

you'll learn once you've been in the industry for a while and have had your ass handed to you / a deposit made inside you...

Mar 17, 2012
Relinquis:

its just you... very few of us are lucky enough to be on the right side of a trade with the goldmans sachs.... its a great feeling (i love it).

you'll learn once you've been in the industry for a while and have had your ass handed to you / a deposit made inside you...

I'll second this. The firm I work at primes with the Sachs, but we don't we trade with them if at all possible, mainly because "everyone" knows they are trading on inside information. Greg Smith's letter is flawed for a lot of reasons, but mainly because his core premise is that clients will leave if they know the firm is underhanded. You can't leave the Sachs, you have to be a client to get into the flow in certain products and have general intel on what is happening in various corners of the Street. It's a necessary evil. Unless the Sachs starts directly robbing from client accounts, clients are not going to leave. Where I work, we constantly joke about how deceptive GS is, but recognize that we can't really do anything about it except exercise caution.

Trade with them at your own risk and with the assumption that they are going to fuck you. Mostly, we just prime with them because they have one of the best prime brokerage set ups, and in this particular function, have exceptional customer service (unlike some other BBs where we have had bad experiences). But we NEVER give them information about what we are doing. I've had strategy meetings in various parts of the world with high level Sachs people and they ALWAYS fish for information that they can use against you. You know what? They get the finger. I tell them the opposite of whatever we're doing. Want to go long? I say I'm interested in short and then trade through another channel. Fuck em.

In general, be afraid of anyone pushing flow when they have their own prop desk, especially if that someone is Goldman. But they can open doors for you, especially overseas, and that is valuable.

Mar 18, 2012
Ravenous:
Relinquis:

its just you... very few of us are lucky enough to be on the right side of a trade with the goldmans sachs.... its a great feeling (i love it).

But we NEVER give them information about what we are doing. I've had strategy meetings in various parts of the world with high level Sachs people and they ALWAYS fish for information that they can use against you. You know what? They get the finger. I tell them the opposite of whatever we're doing. Want to go long? I say I'm interested in short and then trade through another channel. Fuck em.

Bravo to both of you. I love a good underdog story. No flame.

Mar 16, 2012

Thanks for the compliment

Mar 18, 2012

I had a meeting with a top tier executive at an F500 that had experience with Goldman on a regular basis due to heavy M&A activity. When GS was brought up during our conversation, he had this to say about them:

"Those guys over at Goldman may make a lot of money, but let's be real here..they're nothing but a bunch of whores"

Haha couldn't believe he said that. Sadly, seems to be somewhat accurate

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Apr 2, 2015

The only lesson here is that this is a clear example of how not to leave GS, or any firm. The culture is what it is and if you don't like it, leave, but do it quietly.

Apr 2, 2015

...you think he could stay at goldman after writing something like this? are you fucking nuts?

and this is the 3rd time this has been posted btw

Mar 14, 2012

He'll find a job on the buy-side for sure.

Mar 14, 2012

I make so much fucking money that I can brag in the New York Times about my moral superiority and table tennis skills. I'm such a baller, man. I went to Stanford, then got hired by Goldman Sachs. I'm so beautiful that I was featured in our campus recruitment video. I hate Goldman Sachs because I know the culture. I was There. I know these douchebags. And, I decided to quit because I'm better than all of them and all of you.

Signed, Glorious Douchebag

Apr 2, 2015

^ LMAO.

I met Gary Cohn at an alumni dinner in Manhatten, he seemed like a nice guy who did come off quite intimidating.

Goldman wants Patrick Batemans, the rest are losers and weak. That's the impression I got from their recruiting, site visit and from Gary Cohn.

Apr 2, 2015

Didn't take long for parodies. "Why I Left The Empire" by Darth Vader. http://www.thedailymash.co.uk/news/society/why-i-a...

Mar 14, 2012
Mar 14, 2012

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Mar 14, 2012

Mar 14, 2012

Apr 2, 2015

I didn't say it was your fault, I said I was blaming you.

Mar 14, 2012
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Apr 2, 2015