Tag Archives: Goldman Sachs

Welcome to Goldman Sachs

I’m a subscriber to Quora.com and receive a weekly digest by email listing things that I’ve expressed an interest in. One item this week consisted of answers to the question: “What are some of the most profound jokes ever?” I found this one below to be especially profound and timely.


5725 votes by Matthew Baldwin, Massimiliano Marangon, Vallabh Anwikar

A manager at Goldman Sachs has this to tell.

Once upon a time in a village, a man announced to the villagers that he would buy monkeys for Rs 10. The villagers, seeing that there were many monkeys around, went out to the forest and started catching them.

The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort.

He further announced that he would now buy at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again.

Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs 25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it!

The man now announced that he would buy monkeys at Rs 50!

However, since he had to go to the city on some business, his assistant would now buy on behalf of him.

In the absence of the man, the assistant told the villagers, “Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell it to him for Rs 50.”

The villagers squeezed up with all their savings and bought all the monkeys.

Then they never saw the man nor his assistant, only monkeys everywhere!

Welcome to ‘Goldman Sachs’!

Hmm, sound familiar?

More profound jokes here.


Goldman’s “Toxic” culture documented.

This article documents what is probably merely the tip of the iceberg in the case against Goldman Sachs.–t.h.g.

13 Reasons Goldman’s Quitting Exec May Have a Point

By Cora Currier

An executive at Goldman Sachs left the firm today with a bang, penning a New York Times op-ed accusing the company of increasingly putting profits ahead of clients. Greg Smith started as an intern 12 years ago and last headed a derivatives department. Not surprisingly, Goldman quickly and strongly disagreed with his take.

There have obviously been plenty of unflattering headlines about Goldman in the past few years. We decided to look at just one aspect of their record: SEC charges levied against Goldman and its employees over the past decade.

April 2003: SEC charges Goldman Sachs over conflicts of interest among its research analysts. The company eventually settled for $110 million in fines and disgorgements.

November 2003: Former Goldman economist John Youngdahl pleads guilty to insider trading. The firm had to pay the SEC $4.2 million over profits it gained from the illegal dealings.

July 2004: Goldman settles with the SEC for $10 million over charges it improperly promoted a stock sale involving PetroChina.

January 2005: Goldman settles with the SEC for $40 million over charges that it violated securities law in promoting initial public offerings.

April 2006: Two former Goldman employees are charged with running an international insider-trading ring while they were at the firm. Eugene Plotkin and David Pajcin, both in their 20s, paid off insiders at other firms and stole early copies of Business Week to get an edge. They also tried (unsuccessfully) to use strippers to get information. Both eventually served jail time.

March 2007: A Goldman subsidiary, Goldman Execution and Clearing, settles with the SEC for $2 million over allegations that faulty oversight that allowed customers to make illegal trades.

March 2009: Goldman Execution and Clearing settles with the SEC for $1.2 million over improper proprietary trading by employees.

July 2009: The SEC charges a former Goldman Sachs trader Anthony Perez and his brother with insider trading based on information Anthony Perez obtained through his job at Goldman Sachs. He was fined $25,000 and his brother more than $150,000.

May 2010: The SEC hits Goldman Execution and Clearing with a $225,000 fine for violating a rule aimed at regulating short selling.

July 2010: Goldman settles with the SEC for $553 million over allegations that it misled investors about the collateralized debt obligation ABACUS 2007-AC1 by not disclosing the involvement of a hedge fund in its creation, or the fact that the hedge fund stood to benefit if the CDO failed. Goldman executive Fabrice Tourre was also charged.

March 2011: The SEC charges Goldman board member Rajat Gupta with insider trading. Gupta allegedly passed on information he learned as a board member to the hedge fund Galleon Group. In October, 2011, he was arrested and hit with criminal charges by the FBI. The case is pending.

September 2011: The SEC charges a Goldman employee, Spencer Midlin, and his father for insider trading based on information Spencer Midlin gained from his position at Goldman Sachs. The two men were ordered to pay $92,000.

February 2012: Goldman Sachs receives notice from the SEC that the agency may bring charges related to mortgage backed-securities.

This article was published at NationofChange at: http://www.nationofchange.org/13-reasons-goldman-s-quitting-exec-may-have-point-1331824190. All rights are reserved.

Top level bankers resigning in droves. What does this mean?

I have been seeing reports lately that an unusually large number of top level banking and finance executives worldwide have been resigning their positions. The American Kabuki website features a report titled, 320 RESIGNATIONS FROM WORLD BANKS, INVESTMENT HOUSES, MONEY FUNDS, and a Japanese website has posted some amazing graphs of resignations by region, by country, and by company.

Now, today, the New York Times is reporting that, “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.”

And Smith is not going quietly. The Times has published his Op-Ed article in which he explains the basis for his action. It begins with this…

Why I Am Leaving Goldman Sachs


TODAY is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.

To put the problem in the simplest terms, the interests of the client continue to be sidelined in the way the firm operates and thinks about making money. Goldman Sachs is one of the world’s largest and most important investment banks and it is too integral to global finance to continue to act this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for.

I urge everyone to read the rest of the article here.

Government By Goldman Sachs

Reporter Matt Taibbi recently wrote an article for Rolling Stone called The Great American Bubble Machine. In this five part video he elaborates upon the theme and describes how Goldman Sachs has virtually taken over the U.S. government. Watch it.

Paul Craig Roberts: Can the Economy Recover?

Paul Craig Roberts and I have pretty much the same answer to this question. He says:

There is no economy left to recover. The US manufacturing economy was lost to offshoring and free trade ideology. It was replaced by a mythical “New Economy.”

The “New Economy” was based on services. Its artificial life was fed by the Federal Reserve’s artificially low interest rates, which produced a real estate bubble, and by “free market” financial deregulation, which unleashed financial gangsters to new heights of debt leverage and fraudulent financial products.

The real economy was traded away for a make-believe economy. When the make-believe economy collapsed, Americans’ wealth in their real estate, pensions, and savings collapsed dramatically while their jobs disappeared.

He then goes on to identify Goldman Sachs as “the bankster firm [that] controls the economic policy of the United States.” Read the full article here.

Who Owns the U.S. Government?

The only surprising thing about this report is that it appeared on Fox News. Goldman Sachs has just reported record profits. Glenn Beck explains how your government made it possible.