Best of the Week
Most Popular
1.UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - Nadeem_Walayat
2.Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - James_Quinn
3.UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - Nadeem_Walayat
4.Billionaire Investors Backing A Marijuana Boom In 2017 - OilPrice_Com
5.Emerging Markets & Basic Materials Stocks Breaking Out Together - Rambus_Chartology
6.Global Currency Reserve At Risk - Jim_Willie_CB
7.Gold and Silver: Your Stomach Is Probably Wrenching Right Now - The_Gold_Report
8.Warning: The Fed Is Preparing to Crash the Financial System Again - Graham_Summers
9.Basic Materials and Commodities Analysis and Trend Forecasts - Rambus_Chartology
10.Discover Why A Major American Revolution Is Brewing - Harry_Dent
Last 7 days
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17
The Next Tech Crash Could Delay Your Retirement by a Decade - 15th Aug 17
Gold and Silver Precious Metals Nearing Breakout - 15th Aug 17
North Korea Showdown: Pivotal Market Turning Point - 15th Aug 17
Tech Stocks DOT COM Bubble Do-Over? - 14th Aug 17
Deep State Conspiracy or Chaos - 14th Aug 17
From the Trans-Atlantic Axis and the Trans-Asian Axis - 14th Aug 17
Stock Market Intermediate Correction Underway - 14th Aug 17
The Islamic State Jihadi Pivot to Asia - 13th Aug 17
Potential Pivots Upcoming for Stocks and Gold - 13th Aug 17
North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - 12th Aug 17
Gold Stocks Coiled Spring - 12th Aug 17
Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - 12th Aug 17
How to Alton Towers Half Price Discount Entry 2017 and 2018, Any Time, No Pre-Booking! - 12th Aug 17
Top 3 Technical Trading Tools Part 2: Relative Strength Index (RSI) - 11th Aug 17
What Makes Women Better Investors - 11th Aug 17
Crude Oil Price Precious Metals Link in August - 11th Aug 17
Influencer Marketing Predictions All Businesses Should Take Into Account - 11th Aug 17
Really Bad Ideas - Government Debt Isn’t Actually Debt - 10th Aug 17
Gold Sees Safe Haven Gains On Trump “Fire and Fury” Threat - 9th Aug 17
Why Is The Stock Market Not Trading On Fundamentals Lately? - 9th Aug 17
USD/CAD - Can We Trust This Breakout? - 9th Aug 17
New Monthly Rebate to Help Reduce Your Trading Costs - 9th Aug 17
Stock Market Divergences Are Now Appearing! - 9th Aug 17
Is Inflation an issue or did the Fed Mess Up? - 8th Aug 17
Top 3 Technical Trading Tools Part 1: Japanese Candlesticks - 8th Aug 17
Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - 8th Aug 17
What Happened to Thousands of Sheffield's Street Trees 2017 - Fellings Documentary - 8th Aug 17
Solar, Bubble, Banks, War, and Legal Tender: Five Reasons Why You Should Buy Silver Now - 7th Aug 17
CRASH - If Some People Do It, Nothing Bad Happens, But If Everyone Does It, All Hell Breaks Loose - 7th Aug 17
Gold and Silver : The Battle for Control - 7th Aug 17
Precious Metals Sector is on Major Buy Signal - 7th Aug 17
Stock Market - Has Time Run Out? - 7th Aug 17
Get Ready for an Historic Upside Gold and Silver Run - 7th Aug 17
BOOM! Bitcoin Rockets To New All-Time High As Cryptocurrencies Surge Higher! - 7th Aug 17
U.S. Dollar: This Crash Signals the End - 6th Aug 17
Predicting The Price Of Gold Is A Fool’s Game - 6th Aug 17
Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - 6th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

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.


© 2005-2017 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