Goldman Sachs’ headquarters in New York. Greg Smith wrote in an essay for the New York Times that the firm had lost its moral compass. (photo: Mark Lennihan/AP)
By Pat Garofalo, ThinkProgress
15 March 12
oday, Goldman Sachs employee Greg Smith excoriated the investment bank in a New York Times op-ed, resigning due to the banks “toxic and destructive” culture, one in which the bank’s trading profits took precedence over its customers’ financial well-being. Goldman managers allegedly called customers “muppets,” and traders routinely asked how much was being made ripping off one customer or another.
Goldman has been quick to push back on Smith’s claims, portraying him as just a disgruntled employee. Some employees told Fox Business’ Charlie Gasparino that Smith doesn’t know what he’s talking about because he “never made more than $750,000 a year.”
And of course, the financial press has begun reporting anonymous attacks on Smith, quoting “people familiar with the matter” saying that Smith was angry with the size of his bonus and his lack of promotion:
- The Wall Street Journal reported that “people familiar with the matter” said that Smith is just miffed that his bonus was small: “The circumstances of Mr. Smith’s departure aren’t entirely clear. When Goldman doled out annual bonuses earlier this year, Mr. Smith’s small payment became a point of friction, according to people familiar with the matter.”
Forbes’ Nathan Vardi wrote that Smith is just “having a midlife crisis“: “Smith is not the first person who wants to tell his former bosses to shove it. He is also not a whistleblower.”
The financial prognosticators at CNBC decided to mock Smith, saying that he would go form a media firm with Rolling Stone writer and staunch Goldman critic Matt Taibbi and the characters from Sesame Street. CNBC also compared Smith to Tom Cruise’s character in Jerry Maguire, airing the clip of that film when Cruise asks “who’s coming with me?” repeatedly, with no one actually going with him. Fox Business, meanwhile, insinuated that Smith just left because he didn’t get a promotion and was paid a small bonus. Watch a compilation:
Bloomberg’s William Cohan, author of “Money and Power: How Goldman Sachs Came to Rule the World,” said today that Smith is “now in the Witness Protection Program” due to his sure ostracism from Wall Street.
Related articles
- Goldman Sachs Mobilizes Rapid Smear Campaign Against Whistleblower (thinkprogress.org)
- Greg Smith, Goldman Sachs, and Corporate Culture (businessethicsblog.com)
- Lawrence Lessig on ‘What’s really wrong with Goldman Sachs’ (cnn.com)
- In Aftermath Of Whisteblower Editorial, British Members Of Parliament Slam Goldman Sachs (thinkprogress.org)
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General post:
Right! His bonus was only several million–too small to have satisfied him so he went south on his employer. Look who is reporting these aspects of Greg Smith. Reputable news sources who avoid opinionated blather, I’m sure.
Arrrghhh! Go get ‘em Lloyd! But, seriously Lloyd, your lies aren’t big enough for us to view as so utterly fantastic that they, indeed, MUST be true. Nah! When we look at what you guys did to the United States, Mexico, Argentina, Chile, Brazil, Greece, Iceland, Ireland, Portugal, Spain, and Italy…we believe Greg Smith must be telling the TRUTH. Sorry. Excellent performance though!
Perhaps you might succeed on the next planetary precession. It’s only 25,920 years from now. We all have to move on so, you’ll have to stay here and figure out a way to “explore the wisdom of separation.” Bye, bye, Starfighter!
Gee Whiz, Lloyd, I don’t think that my brother Lou is buying into your BS either! Sorry, but the FORCE is strong in my family!
Anytime anyone tells the truth about someone or something, especially if that someone or something is as big and corrupt as Goldman-Sachs there will name-calling, belittling, hate and discontent and called disgruntled. Those in management at GS will direct their spin doctors to make someone like Greg Smith out to be a “disgruntled employee” who didn’t like the money he was making. They could also make Mr. Smith look as if he might be crazy. There are a number of ways to spin the truth to benefit the company. They’ll say anything to take the heat off of the company. Unfortunately for them we know how they operate and we take any rebuttal with a grain of salt…it means nothing anymore.
Ask yourself, why would Mr. Smith just throw away his cushie $750,000 a year job to tell lies? That makes no sense. He knows he will be black-balled on Wall Street, he will be considered one that doesn’t work well with others….in other words, he’s done making the kind of money he was making. Why would he throw his life (as he knew it) away? Why? Because he felt urged to tell the truth, he felt compelled to let the world know how a company like Goldman-Sachs really does business. His higher self knew he had to get out of the slime and clean himself up. He did a very good thing and I send him love and I wish him well.
Thanks for giving a rational response to this. Much appreciated! Hugs, ~Jean