I think most people know by now about the 1MDB scandal that GS is involved in. As the weeks have gone on and more information has come out, it's become clear that there's definitely an issue at GS with ethics that stems from the top. Noting that IB is such a mentorship business and the success that junior bankers will have in their career is somewhat if not largely influenced by who they came up under (ex: almost everyone Milken touched, or all the ex-Lehman bankers that started their own shops), would you leave GS given all that's happening there currently? Obviously, this hypothetical decision isn't made in a vacuum where every other bank on the street are saints, but let's just assume you had an offer from MS or JP on the table, would you leave?
Here're some articles I read that prompted me to ask the question:
https://www.nytimes.com/2018/09/11/business/goldm…
https://news.efinancialcareers.com/uk-en/331082/d…
are you insane... absolutely not
In Asia? Sure.
Anywhere else? Probably not.
Never!
It really depends if ethics are important to you. If now someone has an offer from JPM and GS, I would say most people would now go with JPM. But GS is still very reputable (but it's true that some students have declined GS for JPM, MS, CS this year for the summer internships which didn't happen before -- also ethics are generally more important to Millenials and Gen Z).
Its like when I see people with geology degrees work for petroleum companies. Sure the pay is very good but you are seen as harming the environment. Same with Goldman, yea you're making a lot but some people will see you as an amoral wall street banker. I also think this stereotype will get more prevalent as the years pass by.
I don't really agree, I think most of the traders at GS excel and do a very good job at what they do. The problem here is how the senior bankers at GS are treating this "tail" problem - they basically didn't say a word, and that is worrying for the general image of the firm.
Can't say for the petroleum companies I don't know specific stuff about the sector
.
Of course, GS will still be among the bests in what they do. But we have to be careful with this type of thinking though. Wasn't Lehman the best of the best pre 2009?
.
Some thoughts from Matt Levine regarding GS's negative press coverage:
https://www.bloomberg.com/opinion/articles/2018-11-13/it-s-good-to-be-b…
I agree Goldman Sachs is the gold standard for organized international crime, but I'd say that it's worth having sold your conscience to the devil just to have it as a cachet of credibility on your CV.
Also , I think GS is a bunch of slimeballs, but it's not GS that got it into the 1MDB quagmire, it's the corrupt lone wolf type individual - Tim Leissner in this case. I'd love to point fingers on to GS at this one, but it doesn't really seem like they had a clue what they were doing. Only TL seems to have been in the know of what was truly happening.
It's more than just a lone wolf thing. GS signed off on $600m in fees for a $6bn bond issuance - the fact that this didn't raise any eyebrows points to serious deficiencies in internal controls...
The system is such I believe. They didn't care because the main culprit was a huge money maker. In GS and the world in general, anyone who makes big money is the man of the hour. What they didn't understand is how fallible the guy was.
Having said that, I think GS is a slimeball company. It's amazing how it's associated with a veneer of elitism, Ivy League babes an handsome men in fine clothing - but in reality they resort to hiring prostitutes to get some business from some sovereign wealth fund. I mean at that point the Harvard MBA is as low to me as a used car salesmen. Even a used car salesman is better - he doesn't need hookers to sell his shit and his sale is more hard earned.
GS is a company of thugs, thieves, and liars, however I still maintain my stance that I still think the firm was genuinely in the blind this time. Their guy they placed too much trust on.
But you have a great point. Ultimately a human network is only as strong as its weakest link. Investment banking is all based on people and it's amazing how billion dollar deals can fall apart based on the loose behavior of a few men.
Can't leave Goldman if you don't work there.
If now someone has an offer from JPM and GS, I would say most people would now go with JPM. But GS is still very reputable.
Aspernatur quod dolor voluptatum quo. Aut laborum voluptatum error. Consequatur nulla quo ut voluptas quas quo aut. Quam consequatur in dolorum voluptatem.
Quo enim libero quae sed esse. Non nulla et ullam sed. Et omnis et asperiores. Non quod consequatur in quo animi. Et id quam sapiente rerum reiciendis quia. Cumque expedita voluptate id sit vel et. Neque qui perspiciatis laboriosam.
Voluptatibus quis in sed rerum voluptas laboriosam id. Sed non eveniet perferendis aliquid. Veritatis occaecati aperiam esse quidem placeat nam quod.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...