It was one of the most spectacular resignations in corporate America.
Goldman Sachs employee Greg Smith quit his firm in a very public way after 12 years with the company: He did it with a scathing op-ed published in "The New York Times."
Now, Smith has expanded his public resignation letter into a book, called "Why I Left Goldman Sachs," which releases today.
William Cohan, author of "Money and Power: How Goldman Sachs came to rule the world," talks with John and Zoraida on "Early Start." Cohan, who worked on Wall Street as an investment banker for almost 20 years, weighs in on Smith's claims of the company's operating culture.
Quite a little love fest you had Monday morning with Wall Street and Goldman Sachs.
If you don’t like the message, kill the messenger. Greg Smith’s book was not about his morality but the morality of Goldman Sachs. William Cohan admitted that this is the way Goldman Sachs has always operated and that there is nothing new here. Well it was new to me to hear that it is standard operating practice to ignore the client’s interest when they conflict with Goldman Sachs’. Is it normal operating culture to bundle worthless paper together and then sell them to your clients. Isn’t that fraud? Shouldn’t you stick with the message and find out what has changed, if any, to keep Wall Street from ripping us off in the future. Like Greg Smith says ‘ I don’t trust Wall Street, in particular Goldman Sachs”.
Now isn’t that the real issue that should be discussed and not whether Greg Smith is disgruntled or not? I had to check to make sure I was not watching FOX news.
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