This report is concerning talk show, which I watched on CNN. There were four people talking about Goldman Sachs, which is one of the most powerful investment banks in the world. The whole discussion was based on one of former employees’ letter of resignation.
Last week Greg Smith, former executive director and head of the firm’s US equity derivatives business, left after almost 12 years at the firm and he wrote an explosive letter where he explained his decision. The letter has ever since been on headlines and now the panelists of the show talked is Goldman Sachs really as toxic as Smith told. The discussion was led by the host and the other participants talked when there was their turn. As one might guess, considering the topic the atmosphere was quite negative. For example one of the panelists, Rolling Stones magazine’s journalist, who some years ago wrote an article concerning the way of act’s in Goldman Sachs, was quite sure that there occur a lot of problems in Goldman at the moment.
Smith told in his letter that in Goldman Sachs nothing else matters than money. According to Smith’s letter Goldman’s treasurers are cheating and betraying their clients daily. It is awful to think that some individual company can control world this much. The company owns derivatives as much as the amount of whole worlds GDP is; I think that it is an incomprehensible amount of money. For example meanwhile other investors suffered huge write-downs, Goldman Sachs earned more than 600 million US dollar on investments in Greece. I cannot understand how this is possible if Goldman is playing fair. But we all know that they are not playing by the common rules. Goldman Sachs is one of the reasons for European debt crisis as well as American bank crisis few years ago. The very company helped Greek politicians
