Feature

Business columns: Why Goldman is still the gold standard

Instead of being reviled, Goldman Sachs should be praised for being the sole Wall Street investment bank that &ldquo;actually understands something about risk and risk-taking,&rdquo; said William Cohan in <em>Financial Times.</

William CohanFinancial Times

Pardon me if I don’t jump on the Goldman-bashing bandwagon, said William Cohan. Instead of being reviled, the firm should be praised for being the sole Wall Street investment bank—“both recently deceased and still living”—that “actually understands something about risk and risk-taking.”

Goldman Sachs CEO Lloyd Blankfein, who calls risk management his most important job, is a man who thinks obsessively about the worst-case scenario. That scenario materialized during last year’s market meltdown, when Lehman Brothers failed and AIG looked about to follow suit. Having prepared for the worst, Blankfein and his colleagues were able to quickly raise $5 billion from Warren Buffett and an additional $5 billion in a public stock offering. The capital cushion left Goldman better able to profit than any of its rivals when financial markets rebounded. To top it off, Blankfein was the only financial CEO who “had the decency to say sorry—albeit belatedly—for the role his bank played” in the crisis.

Certainly, there’s much to criticize about Goldman. But Blankfein and his colleagues appear to “actually lose sleep over the possibility of losing their shareholders’ and creditors’ money.” Other bankers should try that sometime.

Recommended

Sullivan: U.S. must keep 'eye on the ball' amid nuclear talks with Iran
National Security Adviser Jake Sullivan.
diplomacy

Sullivan: U.S. must keep 'eye on the ball' amid nuclear talks with Iran

Member of Uganda's Olympic team tests positive for coronavirus
Members of the Ugandan Olympic team.
a sign of things to come?

Member of Uganda's Olympic team tests positive for coronavirus

Did Putin get 'exactly what he wanted' out of Biden summit?
Fiona Hill.
sunday shows

Did Putin get 'exactly what he wanted' out of Biden summit?

Karzai: Afghanistan will be 'better off' without U.S. military
Hamid Karzai.
afghanistan conflict

Karzai: Afghanistan will be 'better off' without U.S. military

Most Popular

7 toons about the Dems' Joe Manchin problem
Political Cartoon.
Feature

7 toons about the Dems' Joe Manchin problem

Bernie Sanders wants to know if cannabis reporter is 'stoned' right now
Bernie Sanders.
Sounds dope

Bernie Sanders wants to know if cannabis reporter is 'stoned' right now

Georgia election workers reportedly received a 'torrent' of threats
Trump rally.
The big lie

Georgia election workers reportedly received a 'torrent' of threats