Why I Am Leaving Goldman Sachs

[Andy Nguyen]

Greg Smith is resigning today as a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa.
The way he resigned from Goldman Sachs, and what he had to say, could reignite a debate over how much Wall Street has changed in the wake of the financial crisis.
http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html?pagewanted=1
http://www.nytimes.com/2012/03/15/b...sachs-hits-a-wounded-wall-street.html?_r=1&hp

 

[Jayanthan]

Sad truth!!! I think GS is running under the philosophy of "TOO BIG TO FAIL"?

 

[jondan]

According to the code of ethic for Chartered Financial Analyst, he has done the right thing by disassociate with his employer because he believe that the firm has placed the interest of itself above its clients' interest. It is sad to see such a respectable firm moving in this direction. I am not surprised if there are many more like this too

 

[kamikade]

I was wondering why now? Why not 2007-2008 or even after "a good year" 2009?

 

[dillshau]

He is "resigning"? Sorry to start this but he was most probably canned or had a big fall out will some other executives. Nobody in such a position of money and power resigns because of moral standings.

If he was actually fired and this is him epicly throwing ALL of the toys out of the pram, then thats a very risky move. The chances that somebody with inside knowledge of the situaiton coming forward and publicly exposing him are extremely high.

For that reason, my guess is that he did actually resign.

 

[Jayanthan]

He is "resigning"? Sorry to start this but he was most probably canned or had a big fall out will some other executives. Nobody in such a position of money and power resigns because of moral standings.

I like your perspective too. "History is written by the Victors"
He may launch his own Hedge Fund or something like that. He can now claim "I am very ethical person in the universe"

 

[Manos Makrakis]

If he was actually fired and this is him epicly throwing ALL of the toys out of the pram, then thats a very risky move. The chances that somebody with inside knowledge of the situaiton coming forward and publicly exposing him are extremely high.

For that reason, my guess is that he did actually resign.

Had he been fired or even let go, Goldman Sachs PR would have already published it. They would have had every reason to do it.

 

[rsingh]

I like how everyone here is focused on undermining his credibility, and not even thinking "what if he's right?". This isn't the first time someone has made these allegations about banks - I'd be surprised if a smart guy like him would tell lies on such a grand scale for no obvious personal benefit - I'd say he's speaking the truth. For those who haven't seen it,

http://www.filmsforaction.org/Watch/Inside_Job_2010/

 

[Jayanthan]

I like how everyone here is focused on undermining his credibility, and not even thinking "what if he's right?". This isn't the first time someone has made these allegations about banks - I'd be surprised if a smart guy like him would tell lies on such a grand scale for no obvious personal benefit - I'd say he's speaking the truth. For those who haven't seen it,

http://www.filmsforaction.org/Watch/Inside_Job_2010/

I don't think, anyone here disrespects him. His claim sounds like too altruistic. Altruistic behavior cant evolve by itself. Certain behavior under certain condition may sound like altruism, but can be explained by self-benefit. Prestige, shame, fear of unknown (failure, social disapproval and etc), better after life ( own hedge fund, he must have good track record with good connection, raising money won't be an issue), could be some reasons behind his claim.

Who would quit $500K and couple of million dollar bonus every yr job.

 

[rsingh]

I don't think, anyone here disrespects him. His claim sounds like too altruistic. Altruistic behavior cant evolve by itself. Certain behavior under certain condition may sound like altruism, but can be explained by self-benefit. Prestige, shame, fear of unknown (failure, social disapproval and etc), better after life ( own hedge fund, he must have good track record with good connection, raising money won't be an issue), could be some reasons behind his claim.

Who would quit $500K and couple of million dollar bonus every yr job.

He's not being altruistic, just being true to his own morals.

So you're saying that if you earn a couple of million dollars a year, but find your workplace practices very unethical - you would not quit/speak out unless you had some financial benefit? Sad!

 

[Jayanthan]

He's not being altruistic, just being true to his own morals.

So you're saying that if you earn a couple of million dollars a year, but find your workplace practices very unethical - you would not quit/speak out unless you had some financial benefit? Sad!

I am not saying that either. Now, I can say so. I am not sure how I would be, If I have billion so everybody else. It is human nature.

How do you know that he is being true to his own morals? because he says so.... Is that how you are validating? GS hasn't started this practices last month or last year. They have been doing for a while. Why didn't he quit back then? Why now? You may come back and say "he is trying to fix, but he couldn't". Come on!!!

 

[Yike Lu]

Who would quit $500K and couple of million dollar bonus every yr job.

A guy who has enough money already and values his free time more than earning more.

Seems the utility of money is logarithmic.

 

[Jayanthan]

A guy who has enough money already and values his free time more than earning more.

Seems the utility of money is logarithmic.

I partially agree with you. Money is like a drug or at least process of making money is like a drug. You won't stop (as long as you r minting money), if you get started.

 

[rsingh]

I am not saying that either. Now, I can say so. I am not sure how I would be, If I have billion so everybody else. It is human nature.

How do you know that he is being true to his own morals? because he says so.... Is that how you are validating? GS hasn't started this practices last month or last year. They have been doing for a while. Why didn't he quit back then? Why now? You may come back and say "he is trying to fix, but he couldn't". Come on!!!

My point is (read my first comment again) - it doesn't matter WHY he said it. Why he didn't quit "then", and why he's quitting now - not really important - and to say that it implies that a senior GS employee who is a Stanford econ graduate, and quits on moral grounds would be likely to be lying - is ridiculous.

The MORE likely thing is - Goldman Sachs grossly unethical. Isn't that something worth discussing?

 

[Jayanthan]

The more likely thing is - Goldman Sachs grossly unethical. Isn't that something worth discussing?

Here you go!!! Nobody is interested in discussing this topic because nobody is getting anything out from it. Here, I am proving my point, human beings do or tend do things only when they have some sort benefit (can be anything) so the guy who resigned from GS.

Anyway, thanx for sharing your view. It is great site to discuss so many thing or look at things in different perspective. Thanx Andy Nguyen

 

[JesseLevermore]

My point is (read my first comment again) - it doesn't matter WHY he said it. Why he didn't quit "then", and why he's quitting now - not really important - and to say that it implies that a senior GS employee who is a Stanford econ graduate, and quits on moral grounds would be likely to be lying - is ridiculous.

The MORE likely thing is - Goldman Sachs grossly unethical. Isn't that something worth discussing?

Completely agree, seems to be all of the people in love with GS who think that someone would only make such a move if he was under investigation. The reality, this guy was probably in one of the safest positions in the firm; what reason does he have to completely berate them now?

And @ Jayanthan, did you ever think that one of the greatest benefits a man can have is the ability to sleep with himself at night? There's probably a greater benefit in that than money can provide, no matter how much you love profit.

 

[Andy Nguyen]

http://dealbook.nytimes.com/2012/03/14/public-rebuke-of-culture-at-goldman-opens-debate/?hp
The recruiter quoted at the end of this article is a member on Quantnet EricFleming

 

[purplyboy]

It sounds like Jerry Maguire.

 

[bigbadwolf]

Mr. Smith seems to be an extraordinarily naive gent. GS has been doing this for years. His op-ed in the NYT will create a stir for a day or two, then fade from public memory. Meanwhile I doubt any financial firm in the US will hire him again. In the US at least, to get along you've got to go along.

 

[MRoss]

Yes that was my point before.

People think either he is a liar or just trying to get even. But the obvious: Is he really that stupid that he didn't notice this over the past few years? The answer of course is no. He just didn't have a reason for spewing this hate. Something obviously got him really mad at GS...