Goldman Sachs has served as a political piñata for so long that many observers may be tempted into believing that Friday’s fraud charges brought by the Securities and Exchange Commission should be viewed as just another part of the political process. This would be a grave mistake. While much of the rhetoric regarding the company remains overheated, the complaint brings forward several charges that point to serious ethical breaches. Goldman Sachs relies on its reputation for client service to justify much of its economic goodwill. Billions of dollars of goodwill could evaporate if the situation is not skillfully handled. Read this article for more details.
Yesterday, we discussed a number of lessons that must be learned from the financial crisis. In a “Tea with The Economist” interview shown below, a Goldman Sachs board member provides his insights regarding leadership during a crisis and financial reforms that are needed to stabilize the overall system. Bill George also comments on a variety of other topics regarding politics, business, and leadership. Read this article to view the video.
Most outside observers had difficulty keeping up with all of the momentous events of the weekend of September 14-15, 2008 with all of the twists and turns that finally led to Lehman Brothers’ historic bankruptcy filing, Bank of America’s purchase of Merrill Lynch, and AIG’s bailout only a few days later. Ever since that tumultuous period, there has been a need for a comprehensive book covering the behind the scenes events. Andrew Ross Sorkin’s Too Big To Fail has succeeded in delivering exactly what is needed to gain a better understanding of what actually took place. Read this article for a detailed review and thoughts on “lessons learned”.
In the Fortune magazine interview shown below, Goldman Sachs CEO Lloyd Blankfein provides his insights on the overall economy, prospects for job growth, and the controversy surrounding his firm’s compensation practices. Read this article for some background information and to view the video.
In what appears to be a downgrade based mostly on a macro call for economic recovery, Goldman Sachs downgraded Wal-Mart stores today from “buy” to “neutral” and lowered the price target on the stock to $56 from $58. While I have not been able to locate the full text of Goldman’s report online, the Wall Street Journal published a couple of excerpts which I have referenced in this article.