The Week: Most Recent Business Giants:Goldman Sachshttp://theweek.com/supertopic/topic/84/goldman-sachsMost recent posts.en-usFri, 23 Mar 2012 12:01:00 -0400http://theweek.comhttp://theweek.com/images/logo_theweek.pngMost Recent Business Giants:Goldman Sachs from THE WEEKFri, 23 Mar 2012 12:01:00 -0400Goldman Sachs' 'muppet' probe: A serious effort to reform?http://theweek.com/article/index/225991/goldman-sachs-muppet-probe-a-serious-effort-to-reformhttp://theweek.com/article/index/225991/goldman-sachs-muppet-probe-a-serious-effort-to-reform<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0074/37415_article_main/w/240/h/300/a-goldman-sachs-trader-on-the-new-york-stock-exchange-floor-the-financial-firm-is-conducting-an.jpg?209" /></P><p>Goldman Sachs is scouring internal emails for the word "muppet" and other slurs its employees may have used to deride the blue-chip firm's clients, according to <em>Reuters</em>. The probe is a response to an op-ed in <em>The New York Times </em>in which former employee Greg Smith accused Goldman employees of "ripping their clients off" and contemptuously labeling them "muppets." The high-profile scandal is a stinging black eye for Goldman, which has long portrayed itself as a haven for wealthy clients' money. Will the "'muppet' hunt" convince Wall Street that Goldman is serious about reforming its "toxic" culture...</p> <a href="http://theweek.com/article/index/225991/goldman-sachs-muppet-probe-a-serious-effort-to-reform">More</a>By The Week StaffFri, 23 Mar 2012 12:01:00 -0400Will Goldman Sachs' CEO survive Greg Smith's 'devastating' rant?http://theweek.com/article/index/225618/willgoldman-sachs-ceo-survive-greg-smiths-devastating-ranthttp://theweek.com/article/index/225618/willgoldman-sachs-ceo-survive-greg-smiths-devastating-rant<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0074/37179_article_main/w/240/h/300/despite-the-controversy-and-criticism-surrounding-lloyd-blankfein-nearly-19-in-20-goldman-sachs.jpg?209" /></P><p>In the banking equivalent of the shot heard round the world, Goldman Sachs executive Greg Smith announced his resignation Wednesday in a "devastating"&nbsp;<em>New York Times&nbsp;</em>op-ed that accused the firm of ruthlessly exploiting its clients for profit. Smith assailed Goldman for its "toxic and destructive" business practices and "morally bankrupt" culture, and placed the blame squarely on CEO Lloyd Blankfein. The controversial Goldman boss has already been blasted by lawmakers for his company's dubious deals, and has forked over millions of dollars to settle fraud charges brought by the SEC. And...</p> <a href="http://theweek.com/article/index/225618/willgoldman-sachs-ceo-survive-greg-smiths-devastating-rant">More</a>By The Week StaffThu, 15 Mar 2012 11:20:00 -0400Greg Smith's 'devastating' Goldman Sachs resignation ranthttp://theweek.com/article/index/225565/greg-smiths-devastating-goldman-sachs-resignation-ranthttp://theweek.com/article/index/225565/greg-smiths-devastating-goldman-sachs-resignation-rant<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0074/37163_article_main/w/240/h/300/the-goldman-sachs-headquarters-in-lower-manhattan-former-executive-greg-smiths-public-rant-gives-an.jpg?209" /></P><p>Often-loathed investment bank Goldman Sachs is once again facing "devastating" criticism, this time from one of the firm's own executives, Greg Smith, who publicly quit his job Wednesday &mdash; via a&nbsp;<em>New York Times</em>&nbsp;column in which he branded Goldman as "toxic and dangerous." Smith alleges that Goldman doesn't care at all about its customers, and implores those remaining with the company to "weed out the morally bankrupt people" before the bank implodes. (Goldman refutes Smith's claims, saying they "don't reflect the way we run our business.") Here, five takeaways from Smith's&nbsp;"...</p> <a href="http://theweek.com/article/index/225565/greg-smiths-devastating-goldman-sachs-resignation-rant">More</a>By The Week StaffWed, 14 Mar 2012 15:49:00 -0400Goldman Sachs' $428 million loss: What does it mean?http://theweek.com/article/index/220466/goldman-sachs-428-million-loss-what-does-it-meanhttp://theweek.com/article/index/220466/goldman-sachs-428-million-loss-what-does-it-mean<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0067/33839_article_main/w/240/h/300/the-goldman-sachs-booth-at-the-new-york-stock-exchange-the-banking-heavyweights-428-million.jpg?209" /></P><p>On Tuesday, Goldman Sachs reported a $428 million loss for its third quarter, down from a $1.7 billion profit in the same three-month period a year ago. It marked only the second time the investment bank has reported a quarterly loss since it went public in 1999. Goldman did have "pockets of strength" last quarter, but those were more than offset by nearly $3 billion lost in the tumultuous stock and bond markets. The result? "The banking industry&rsquo;s perpetual winner was this quarter's loser," says the <em>Associated Press</em>. What does it mean for Wall Street?</p><p><strong>This signals a seismic shift: </strong>"Goldman...</p> <a href="http://theweek.com/article/index/220466/goldman-sachs-428-million-loss-what-does-it-mean">More</a>By The Week StaffWed, 19 Oct 2011 13:53:00 -0400Goldman Sachs' 'troubling' outsourcing planhttp://theweek.com/article/index/216810/goldman-sachs-troubling-outsourcing-planhttp://theweek.com/article/index/216810/goldman-sachs-troubling-outsourcing-plan<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0062/31430_article_main/w/240/h/300/one-of-the-countrys-largest-investment-banks-is-laying-off-at-least-1000-high-paying-skilled.jpg?209" /></P><p>OK, this wouldn't be the first time a big U.S. company has fired workers at home to outsource their jobs to Asia. But this time the company is the highly profitable banking giant Goldman Sachs, and the 1,000 (or more) to-be-outsourced jobs are "high-paying, skilled positions in sales and investment banking," rather than, say, call center or assembly-line jobs. Goldman has reportedly begun sharing its Singapore outsourcing plans with Congress (even before alerting its shareholders) to avoid a messy political "fallout." Should we be outraged that Wall Street's "giant vampire squid" is outsourcing...</p> <a href="http://theweek.com/article/index/216810/goldman-sachs-troubling-outsourcing-plan">More</a>By The Week StaffWed, 29 Jun 2011 10:15:00 -0400Goldman Sachs execs: Going to jail, after all?http://theweek.com/article/index/214348/goldman-sachs-execs-going-to-jail-after-allhttp://theweek.com/article/index/214348/goldman-sachs-execs-going-to-jail-after-all<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0059/29886_article_main/w/240/h/300/ceo-lloyd-blankfein-and-other-goldman-sachs-executives-could-still-face-criminal-prosecution-two.jpg?209" /></P><p>Goldman Sachs manipulated financial markets, profited from the housing crisis, and misled its clients and Congress, according to a 635-page report released Wednesday by a Senate subcommittee. Sen. Carl Levin (D-Mich.), the chairman of the Senate Permanent Subcommittee on Investigations, says some of the findings of the panel's two-year investigation will be referred to the Justice Department for possible criminal or civil action. He calls the investment bank a "financial snake pit rife with greed, conflicts of interest, and wrongdoing." Naturally, Goldman disagrees with many of the report's conclusions...</p> <a href="http://theweek.com/article/index/214348/goldman-sachs-execs-going-to-jail-after-all">More</a>By The Week StaffFri, 15 Apr 2011 17:14:00 -0400Goldman Sachs, Warren Buffett, and the 'ultimate insider' scandalhttp://theweek.com/article/index/212665/goldman-sachs-warren-buffett-and-the-ultimate-insider-scandalhttp://theweek.com/article/index/212665/goldman-sachs-warren-buffett-and-the-ultimate-insider-scandal<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0057/28802_article_main/w/240/h/300/former-goldman-sachs-director-rajat-gupta-one-of-the-most-well-connected-men-on-wall-street-is.jpg?209" /></P><p>It sounds like a plotline straight out of Oliver Stone's <em>Wall Street</em>: On March 1, the SEC charged Rajat Gupta, a former Goldman Sachs director described as the "ultimate corporate insider," with illegally handing confidential investor information over to a hedge fund. Here, a guide to how the alleged dealing went down, who stands to win and lose, and how Warren Buffett got involved:<br /><br /><strong>First things first. What is insider trading?</strong><br />The term refers to any instance when a financial trader takes advantage of confidential insider knowledge to make money from the impact of that information on the market.</p>... <a href="http://theweek.com/article/index/212665/goldman-sachs-warren-buffett-and-the-ultimate-insider-scandal">More</a>By The Week StaffWed, 02 Mar 2011 15:06:00 -05003 reasons why Goldman Sachs' profits have tumbledhttp://theweek.com/article/index/211239/3-reasons-why-goldman-sachs-profits-have-tumbledhttp://theweek.com/article/index/211239/3-reasons-why-goldman-sachs-profits-have-tumbled<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0055/27867_article_main/w/240/h/300/while-more-diversified-banks-such-as-jp-morgan-fared-relatively-well-fourth-quarter-profits-at.jpg?209" /></P><p>Goldman Sachs ended 2010 on a "financially humbling note," with its fourth-quarter profits down 52 percent from the same period in 2009. This was the third straight decline in quarterly profits at the Wall Street giant, and investors are worried that what seemed like a passing trend may signal a serious issue. (Watch a <em>New York Times </em>report looking inside Goldman Sachs.) What's behind Goldman Sachs' continuing slide in profits? Here, three factors:</p><p><strong>1. Investors got spooked</strong><br />Fourth-quarter revenue from Goldman's "usual engine for growth" &mdash; its bond, currency, and commodities business &mdash...</p> <a href="http://theweek.com/article/index/211239/3-reasons-why-goldman-sachs-profits-have-tumbled">More</a>By The Week StaffThu, 20 Jan 2011 12:31:00 -0500Why Goldman Sachs is expecting to make as much money as everhttp://theweek.com/article/index/206000/why-goldman-sachs-is-expecting-to-make-as-much-money-as-everhttp://theweek.com/article/index/206000/why-goldman-sachs-is-expecting-to-make-as-much-money-as-ever<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0048/24140_article_main/w/240/h/300/goldman-executives-tell-analysts-they-wont-experience-any-kind-of-pay-cut.jpg?209" /></P><p>If you're expecting the new financial reform law to cut into Goldman Sachs' profits, think again, says Matt Taibbi at <em>Rolling Stone</em>. The <em>Los Angeles Times</em> recently reported that Goldman executives are privately &mdash; and with conviction &mdash; assuring analysts that they won't make any less money than they did before. Goldman appears to be "seriously preparing for some major changes," since the new rules bar banks from engaging in proprietary trading, or investing the firm's own money. The idea is to prevent federally-insured depository institutions from "engaging in high-risk speculation,"...</p> <a href="http://theweek.com/article/index/206000/why-goldman-sachs-is-expecting-to-make-as-much-money-as-ever">More</a>By The Week StaffFri, 13 Aug 2010 10:10:00 -0400Goldman Sachs' ban on email swearinghttp://theweek.com/article/index/205594/goldman-sachs-ban-on-email-swearinghttp://theweek.com/article/index/205594/goldman-sachs-ban-on-email-swearing<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0047/23840_article_main/w/240/h/300/goldman-sachs-wants-employees-to-watch-their-language.jpg?209" /></P><p>There will be no more&nbsp;"sh***y deals" at&nbsp;Goldman Sachs &mdash; in writing, at least. The embattled Wall Street bank has reportedly banned employees from swearing in correspondence, after an email boasting of&nbsp;"sh***y deals" came to light during the bank's probe by the Senate earlier this year.&nbsp;But critics say Goldman Sachs may just be trying to avoid more meaningful reforms of the sort mandated in its expensive settlement this month with the SEC. Was swearing off swearing a cosmetic touch or indicative of real reform?</p><p><strong>Banning swearing doesn't mean there won't still be bad deals...</strong></p> <a href="http://theweek.com/article/index/205594/goldman-sachs-ban-on-email-swearing">More</a>By The Week StaffFri, 30 Jul 2010 15:06:00 -0400Did Goldman Sachs provoke a world hunger crisis?http://theweek.com/article/index/205342/did-goldman-sachs-provoke-a-world-hunger-crisishttp://theweek.com/article/index/205342/did-goldman-sachs-provoke-a-world-hunger-crisis<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0047/23679_article_main/w/240/h/300/more-worries-for-goldman-sachs.jpg?209" /></P><p>Wall Street giant Goldman Sachs apparently didn't end its PR troubles by settling a fraud lawsuit with regulators &mdash; now a British nonprofit is accusing the firm's traders of starving some of the world's poor by creating a speculative frenzy in food commodities. The World Development Movement has launched an online campaign accusing Goldman of spearheading commodities speculation that sent the prices of wheat, corn, rice, and other staples skyrocketing in late 2006, pushing 200 million people toward malnutrition and starvation. Goldman called the accusation "disingenuous and downright misleading...</p> <a href="http://theweek.com/article/index/205342/did-goldman-sachs-provoke-a-world-hunger-crisis">More</a>By The Week StaffFri, 23 Jul 2010 12:00:00 -0400Are Goldman's best days behind them?http://theweek.com/article/index/205189/are-goldmans-best-days-behind-themhttp://theweek.com/article/index/205189/are-goldmans-best-days-behind-them<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0043/21692_article_main/w/240/h/300/goldman-sachs-ceo-lloyd-blankfein-has-some-explaining-to-do.jpg?209" /></P><p>By its standards, Goldman Sachs had a dreadful second quarter with earnings plummeting a greater-than-expected 82 percent, to $453 million, from year-ago levels. It was the first time in five years Goldman underperformed analysts' forecasts, and its battle with the S.E.C. &mdash; ending in a humbling $550 million settlement last week &mdash; was only a small factor. "We've grown accustomed to Goldman bucking the trends," says Walter Todd at Greenwood Capital Associates. "Maybe Superman is turning into Clark Kent." Are Goldman's legendary Masters of the Universe becoming mere mortals? (Watch a Fox...</p> <a href="http://theweek.com/article/index/205189/are-goldmans-best-days-behind-them">More</a>By The Week StaffWed, 21 Jul 2010 10:25:00 -0400Goldman Sachs' SEC settlement: Winners and losershttp://theweek.com/article/index/205112/goldman-sachs-sec-settlement-winners-and-losershttp://theweek.com/article/index/205112/goldman-sachs-sec-settlement-winners-and-losers<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0047/23538_article_main/w/240/h/300/goldman-sachs-has-to-pay-550-million-is-that-enough.jpg?209" /></P><p>The Securities and Exchange Commission announced a record $550 million settlement with Goldman Sachs, which it sued in April for "making false and misleading statements to investors about a synthetic collateralized debt obligation that was designed to fail." The fine is the largest penalty ever paid by a Wall Street firm, although it's only 4 percent of Goldman's 2009 net profit and half of what the two banks lost (they get $250 million of the settlement cash; the rest goes to the U.S. Treasury). So, who won, and who lost, in this deal? (Watch the announcement of the Goldman settlement)</p><p><strong>WINNERS...</strong></p> <a href="http://theweek.com/article/index/205112/goldman-sachs-sec-settlement-winners-and-losers">More</a>By The Week StaffFri, 16 Jul 2010 14:08:00 -0400Goldman's (suspiciously) perfect 63-day trading runhttp://theweek.com/article/index/202836/goldmans-suspiciously-perfect-63-day-trading-runhttp://theweek.com/article/index/202836/goldmans-suspiciously-perfect-63-day-trading-run<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0044/22144_article_main/w/240/h/300/some-think-goldmans-immaculate-profitability-is-downright-criminal.jpg?209" /></P><p>In a disclosure destined to focus more unwanted attention on Wall Street, Goldman Sachs reported Monday that its traders made money on all 63 trading days of the first quarter of 2010&mdash;the first perfect quarter in Goldman's history. But with the Wall Street giant already facing government action for allegedly defrauding investors, the news threatens to "exacerbate criticism that Goldman has an unfair advantage in the markets." A Goldman spokesman says the stellar quarter simply proves the firm is good at assessing risks. Is Goldman playing fair? <br /><br /><strong>Clearly, Goldman's cheating:</strong> Sure, Goldman has...</p> <a href="http://theweek.com/article/index/202836/goldmans-suspiciously-perfect-63-day-trading-run">More</a>By The Week StaffTue, 11 May 2010 14:10:00 -0400Will Goldman Sachs dump Lloyd Blankfein?http://theweek.com/article/index/202662/will-goldman-sachs-dump-lloyd-blankfeinhttp://theweek.com/article/index/202662/will-goldman-sachs-dump-lloyd-blankfein<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0044/22059_article_main/w/240/h/300/still-on-the-job-goldman-sachs-ceo-lloyd-blankfein.jpg?209" /></P><p>As Goldman Sachs battles SEC fraud charges, the bank is reportedly considering dumping CEO Lloyd Blankfein. According to the <em>Wall Street Journal</em>, current and former executives of the firm are having "informal" discussions about cleaning out Goldman's top level management, including Blankfein. The controversial chief executive, who faced a Senate panel last week, has become a high-profile target of public anger &mdash; for instance, over his recent comment that the wealthy Wall Street firm was "doing God's work." Can he survive? (Watch a Fox Business report about Lloyd Blankfein's future)</p><p><strong>The CEO...</strong></p> <a href="http://theweek.com/article/index/202662/will-goldman-sachs-dump-lloyd-blankfein">More</a>By The Week StaffThu, 06 May 2010 12:30:00 -0400Should Goldman Sachs just settle?http://theweek.com/article/index/202581/should-goldman-sachs-just-settlehttp://theweek.com/article/index/202581/should-goldman-sachs-just-settle<img src="https://7e8c.https.cdn.softlayer.net/807E8C/origin.theweek.com/img/dir_0043/21997_article_main/w/240/h/300/goldman-sachs-ceo-lloyd-blankfein-fends-off-reporters-after-a-federal-hearing.jpg?209" /></P><p>The legal assault on Goldman Sachs is growing &mdash; just days after federal regulators accused Goldman of fraud, the Justice Department has launched a criminal investigation into whether Goldman employees duped investors who bought mortgage-backed securities from the firm. Now, the Wall Street powerhouse faces a difficult decision: Tarnish its reputation by admitting wrongdoing under a deal to avoid prosecution, or enter a potentially devastating legal battle by continuing to insist it did nothing wrong. What should Goldman do? (Watch a Fox report about Goldman Sachs' settlement pros and cons...</p> <a href="http://theweek.com/article/index/202581/should-goldman-sachs-just-settle">More</a>By The Week StaffTue, 04 May 2010 11:25:00 -0400