Best of the Week
Most Popular
1.UK House Prices BrExit Crash NOT Likely Despite London Property Market Weakness - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit Implications for UK Stock Market, Sterling GBP, House Prices and UK Politics... - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - Nadeem_Walayat
7.UK Interest Rate Cut to 0.25% Imminent and More QE Money Printing - Nadeem_Walayat
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.The Stock Market is Reading it Wrong! - Chris_Vermeulen
10.Breakouts Galore in Gold and Silver - Jordan_Roy_Byrne
Free Silver
Last 7 days
Silver Market COT Stuns: What's Going On Here? - 24th July 16
Gold Demand Remains Stable During Sector Weakness - 24th July 16
Sernova, Diabetes and Haemophilia - 24th July 16
Russia: Tensions, Turmoil, and Western Hubris - 24th July 16
Soybean Commodity Price to Soar Again - 23rd July 16
SPX Stock Market Uptrend Continues - 23rd July 16
Gold And Silver – Debt Addiction Will Carry Precious Metals Higher, Guaranteed - 23rd July 16
Pokemon Go - How to Play, First Use, Balls, Stops, Catching Pokemon's... Great Excercise! - 23rd July 16
7 Signs That the Gold Market Remains Resilient - 23rd July 16
Basic Income in The Time of Crisis - 23rd July 16
Silver Bull Faces Correction - 22nd July 16
The Serious Warning No One’s Talking About - 22nd July 16
Stock Market Insight from Greed, Volatility, and Put/Call Ratio - 22nd July 16
What Will Happen To the Stock Market When Interest Rates Rise? - 22nd July 16
How to Escape the World’s Biggest Ponzi Scheme - 22nd July 16
Addicted to Debt - We Can’t Borrow from the Future Anymore - 21st July 16
Not Everything Is Bullish for Gold - 21st July 16
Don’t Get Sucked Back Into the Stock Market - The Big Picture Hasn’t Changed - 21st July 16
Silver – Caught Inside - 21st July 16
Forex: "The Markets Are Getting Exciting!" - 20th July 16
China Economic Troubles - Is Kyle Bass Finally Getting His Revenge? - 20th July 16
Why Lithium Will See Another Price Spike This Fall - 20th July 16
The Peak Oil Paradox Revisited - 19th July 16
SPX Challenges the Upper Trendline - 19th July 16
Missing ’28 Pages’ of the 9/11 Report Released into Blitzkrieg of World Events - 19th July 16
Likelihood of Organized Disruption at GOP Convention - 19th July 16
More on the ‘Breadth Thrust’ and Stock Market Internals - 19th July 16
FX Traders: Get a Free Week of Forecasts (Details inside) - 19th July 16
Ups and Downs in Gold and Crude Oil Price - 19th July 16
Keep an Eye on ‘Bitcoin’ as the Next ‘Financial Crisis’ Starts! - 18th July 16
Erdogan Might Have Known about the Coup but Didn’t Prevent It on Purpose - 18th July 16
More Deflation Ahead: Silver, Gold And Their Mining Stocks A Must-Have - 18th July 16
Stock Market Minor Top? - 18th July 16
5 Best Gold and Silver Junior Mining Stocks in 2016 - 17th July 16
Gold And Silver – NWO-Created Tragedies Will Never End, Seek Truth - 16th July 16
How Long Can Buybacks Continue To Support A Market Which Is Standing On A Fundamentally Flawed Premise? - 16th July 16
Will They Come For Your IRA? - 15th July 16
Gold’s Record Selling Overhang - 15th July 16
Capitalism Has Entered a New Era—and Historic Stock Market Investing Returns Are Gone Forever - 15th July 16
Gold Price Could Hit $5,000 or Even $10,000 in a Few Years - 15th July 16
Junior Gold and Silver Mining Funds or Individual Gold and Silver Mining Stocks - 15th July 16
The Soaring Risk of Flying in Bernanke's Helicopter - 15th July 16
The Broad Stock Market, Helicopters and Gold - 15th July 16
The Curious Case of Vanishing Lady Liberty; Only Gold and Silver Remember Her - 15th July 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Forex Forecasts

Goldman Sachs Should 'Stop Saying' It Puts Customers First

Politics / Credit Crisis 2012 Mar 29, 2012 - 10:19 AM GMT

By: Bloomberg

Politics

Best Financial Markets Analysis ArticleFormer SEC Chairman Arthur Levitt, who serves as a senior policy advisor for Goldman Sachs, spoke to Bloomberg TV's Erik Schatzker this morning on "Inside Track." Levitt said that Goldman should "stop saying" the firm puts customers first and that Lloyd Blankfein's "future is determined really by what the business is over the course of coming months."


On whether Greg Smith's Op-Ed had any impact on recent changes at Goldman:

"You know enough about the media to know that when a story like this percolates and a Greg Smith comes up -- and he comes up not just here but in Credit Suisse and Morgan Stanley -- it raises to a level that's beyond its merits. Greg Smith was there for a number of years - why did he surface just recently? I don't think that determines the fate of the company. I personally believe that something that's awfully important -- we talk about putting customers first -- I think we probably ought to stop saying that. Nobody really puts customers first. Business is a tension between sellers and buyers. That tension always exists."

On why Goldman Sachs should stop saying the firm puts customers first:

"I would not emphasize that beyond its merits and I would always point out that there is a logical, reasonable, fair, understandable tension between a seller of a product and a buyer of a product. It's not to say that buyers should beware. It's to say there should be transparency but on the other hand, let's not create a fellowship of buyers and sellers which will march into the sunset."

On whether Goldman would be tarnished if they said they don't put customers first:

"Goldman Sachs is distinguished because they do it better than everybody else, not because of any tagline. This is an advertising issue. It's become a PR issue because the media has made it such. I am saying that Goldman shouldn't play to that. They should play to their competence which is considerable. Lloyd's coming or going is no different than the comings or goings of any other great corporate executive. His time will come, undoubtedly. Each episode doesn't lead one step further to that event. I think we emphasize each episode much too much."

On why Goldman created the "lead director" position:

"Not everybody agrees that splitting the roles is a good thing. I was part of a panel that was created by the Business Council several years ago on this issue and we decided that for some companies, a split role doesn't make sense. For others, it makes a lot of sense. I think the Goldman's board felt that because of Lloyd's talent, and because of their own situation for the time being, they didn't want to split the roles. This union which is the municipal workers' union here in New York feels very compellingly that the roles should be split but also that there should be a lead director. I think the board and management at Goldman Sachs conceded that point."

On whether the lead director position for John Bryan is any change at all:

"I think there's clearly a change because we have to take this in the context of everything else that has gone on around Goldman Sachs - the business standards group, the pressure that's been put on them by the media. Creating a lead director and whomever that will be, will be a very powerful guy is a concession to a member of the board will have more power. I think there will also undoubtedly have their independent members meet and I think that alone will be a new standard."

On how these changes impact Lloyd Blankfein and Gary Cohn's roles:

"I don't know why people focus on the part of it. I don't think Gary Cohn enters into the equation. He's a very senior guy at the company and he helped formulate this decision but this has nothing to do with his strength in the corporate galaxy. As for Lloyd, I think his future is determined really by what the business is over the course of coming months."

bloomberg.com

Copyright © 2012 Bloomberg - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife