Goldman Sachs former partner “Steven Mnuchin, a financier with deep roots on Wall Street and in Hollywood but no government experience, is expected to be named Donald J. Trump’s Treasury secretary . . . .”. – NYT, Nov. 30, 2016.
Here’s a memory jogger about Goldman Sachs from 2012.
“THE WALL STREET TATTLER” – Gordon C. Stewart — March 15, 2012
How could he do this? Is Greg Smith a tattler? Or, perhaps, Judas?
How could one of Wall Street’s own go to the New York Times (“Why I am leaving Goldman Sachs”) to publicly denounce the company’s culture? “He just took a howitzer and blew the entire firm away,” said Larry Doyle of Greenwich Investment Management.“ (“Wall Street Exec Quits with Public Broadside“).
According to the LA Times article, Goldman Sachs’ CEO Lloyd Blankfein suggests that Mr. Smith – Goldman’s executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa.- is a “disgruntled employee.” William Cohan, author of Money and Power: How Goldman Sachs Came to Rule the World, says that “there are lots of disgruntled people who leave Wall Street, and they don’t do this” (i.e. open their mouths.) “What I’m hearing (on Wall Street),” said Cohan, “is sour grapes. You just pigged out at the trough for 12 years and you don’t have enough sense to keep your mouth shut.” (underlining mine)
Keeping one’s mouth shut is the name of the game on Wall Street.
Conscience may have its place so long as you keep it to yourself. You can have a conscience on Wall Street, just don’t exercise it. You’re part of an elite gang. Whether on the Street corners of impoverished neighborhoods like Watts in LA and Bedford-Styvesant in NYC, or in the center of crony capitalism that is Wall Street, gang members don’t rat on other gang members. If you don’t like it, swallow hard and keep your mouth shut.
Goldman’s rebuttal to Mr. Smith’s statement -“It makes me ill how callously people talk about ripping off their clients,” referring to their own clients as Muppets – hardly has the ring of strong denial. “We disagree with the views expressed, which we don’t think reflect the way we run our business.”
Hmmm. “…don’t think…”? Why not “don’t”?
It’s a rare thing for a spokesperson for a corporation with the best legal counsel in the world to say anything than a flat-out denial. “We don’t think” sets up the issue as a matter of perception, not fact. It’s Goldman’s perceptions of itself versus Mr. Smith’s disgruntled perception.
Mr. Smith’s refusal to live by the Wall Street gang code of conduct will lead to a barrage of attacks on his character calculated to divert the public’s attention from an institution that eats people’s investments and life savings to the Judas who is without integrity.
Goldman understands that for most of us the world is personal, not institutional. We don’t like tattlers and turn-coats, disgruntled employees who never learned the lesson of kindergarten that you never tattle on your friends. You don’t go running home to tell momma. Part of the code of the playground is not to tell.
What’s even more unusual in this case is that Greg Smith dealt in derivatives. Remember them? Derivatives – a complicated form of financial market gambling so convoluted that even the people who manage them can’t explain how they work – were at the center of the Wall Street meltdown in 2008. They were legal then. They are legal now. Goldman Sachs and the rest of the Wall Street gang of crony capitalism are still calling the shots with the highest paid Washington lobbyists money can buy.
Greg Smith is a Wall Street Judas who betrayed his gang not with a kiss but with a howitzer.
How could he do this? Why didn’t the guy who ate at the pig trough for 12 years just kiss and say good-bye? Why did he make his money and then break the code? Unless…unless…unlike so many of those who were taught not to tattle, Greg Smith couldn’t live with himself and decided not to run home to tell momma but to run to the New York Times. He’ll never again be allowed on the playground.
POSTSCRIPT, November 30, 2016: So much for the howitzer. Like Jimmy Stewart in “Mr. Smith Goes to Washington” in 1939, Greg Smith was a hero. Donald Trump is no Mr. Smith. So much for “draining the swamp.”
- Gordon C. Stewart, Chaska, MN, November 30, 2016.