(Image source: Bloomberg)

BY CHRISTINE KARSTEN

ANCHOR LAUREN ZIMA



A former executive employee at Goldman Sachs made his exit memorable in a very public way. ABC’s Good Morning America reports, one day after stocks reach a new high — here comes a bombshell...



“Greg Smith, who heads the firm’s derivative business, tells The New York Times, and I quote, ‘The environment now is as toxic and destructive as I have ever seen it.’”

 

But it didn’t stop there. USAToday reports the 12-year employee blasts how Goldman Sachs treats its clients.


“He charges that top officials at the company callously talk about ‘ripping their clients off’ and says he has seen five different managing directors over the past 12 months refer to their own clients as ‘muppets...’”


Goldman responded, saying Smith was not as high up in the company as the article would have readers believe. HLN has Goldman’s response to the specific charges Smith hurled.


“Goldman says, of course it cares about its clients. It says ‘We disagree with views expressed, which we don’t think reflect the way that we run our business.’”


But Smith’s over-the-top resignation reignites debate about the current culture of Wall Street. Mad Money’s Jim Cramer tells NBC:


“I hate to think that all these places have just made it so it’s just rapacious capitalism and nobody has learned. It is just a shame, and this is a shocking piece.”


But not everyone buys Smith’s account of the company. A writer for Forbes says Smith is just having a mid-life crisis, and had no problem working for Goldman when he was makin’ the money.


“He remained happily employed at Goldman after it took a massive taxpayer bailout. ...Goldman was also allowed to become a bank holding company and borrow cash from the Federal Reserve’s discount window for just about nothing while riding the yield curve the Fed had set up. Smith stayed for all that.”

 
But while analysts say it’s not unusual for a company Goldman’s size to have disgruntled employees, a panelist for Bloomberg says this isn’t the usual worker grumblings. She says it’s one thing for a Rolling Stone writer to call Goldman the Vampire Squid...

“...it is another for an employee to come out and say something as measured as ‘Goldman Sachs today has become too much about short cuts and not enough about achievements’.”


The response to the op-ed has been intense: Smith was a trending topic on Twitter, and his resignation letter prompted parodies.


One -- at The Daily Mash, a letter from Darth Vader called, “Why I am Leaving the Empire.”

 

A writer for the Washington Post says Smith’s story is so buzz-worthy because of Goldman’s role in the mortgage and financial crises, but also …


“ … I think the overwhelming response to Smith’s letter has just as much to do with the fascination people have with telling off their boss on the way out the door.”

Former Goldman Sachs Exec. Resigns Via NYT Op-ed

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Mar 14, 2012

Former Goldman Sachs Exec. Resigns Via NYT Op-ed

(Image source: Bloomberg)

BY CHRISTINE KARSTEN

ANCHOR LAUREN ZIMA



A former executive employee at Goldman Sachs made his exit memorable in a very public way. ABC’s Good Morning America reports, one day after stocks reach a new high — here comes a bombshell...



“Greg Smith, who heads the firm’s derivative business, tells The New York Times, and I quote, ‘The environment now is as toxic and destructive as I have ever seen it.’”

 

But it didn’t stop there. USAToday reports the 12-year employee blasts how Goldman Sachs treats its clients.


“He charges that top officials at the company callously talk about ‘ripping their clients off’ and says he has seen five different managing directors over the past 12 months refer to their own clients as ‘muppets...’”


Goldman responded, saying Smith was not as high up in the company as the article would have readers believe. HLN has Goldman’s response to the specific charges Smith hurled.


“Goldman says, of course it cares about its clients. It says ‘We disagree with views expressed, which we don’t think reflect the way that we run our business.’”


But Smith’s over-the-top resignation reignites debate about the current culture of Wall Street. Mad Money’s Jim Cramer tells NBC:


“I hate to think that all these places have just made it so it’s just rapacious capitalism and nobody has learned. It is just a shame, and this is a shocking piece.”


But not everyone buys Smith’s account of the company. A writer for Forbes says Smith is just having a mid-life crisis, and had no problem working for Goldman when he was makin’ the money.


“He remained happily employed at Goldman after it took a massive taxpayer bailout. ...Goldman was also allowed to become a bank holding company and borrow cash from the Federal Reserve’s discount window for just about nothing while riding the yield curve the Fed had set up. Smith stayed for all that.”

 
But while analysts say it’s not unusual for a company Goldman’s size to have disgruntled employees, a panelist for Bloomberg says this isn’t the usual worker grumblings. She says it’s one thing for a Rolling Stone writer to call Goldman the Vampire Squid...

“...it is another for an employee to come out and say something as measured as ‘Goldman Sachs today has become too much about short cuts and not enough about achievements’.”


The response to the op-ed has been intense: Smith was a trending topic on Twitter, and his resignation letter prompted parodies.


One -- at The Daily Mash, a letter from Darth Vader called, “Why I am Leaving the Empire.”

 

A writer for the Washington Post says Smith’s story is so buzz-worthy because of Goldman’s role in the mortgage and financial crises, but also …


“ … I think the overwhelming response to Smith’s letter has just as much to do with the fascination people have with telling off their boss on the way out the door.”

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