The core of Smith's discontent is directed at Goldman's "bloodthirsty"

Absrtact: After devoting 12 years of his youth to Goldman Sachs, Gregosmith (Greg Smith) chose to stab the back of his old club on the day he left. On the night of Wednesday, the former Goldman Sachs executive criticized the company for its moral decay in the New York Times, shelling Goldman Sachs

After devoting 12 years of his youth to Goldman Sachs, Greg (Greg Smith) chose to "stab" behind his old club on the day he left.

On the evening of Wednesday, the former Goldman Sachs executive, in the New York Times, criticized the company for its moral decay, blasted Goldman's corporate culture as "poisonous" and "destructive", and was outraged by the announcement of resignation.

Goldman Sachs responded to an interview with the first financial daily, but declined to disclose more information about Smith's career background and investment record.

The specific reason for the departure of the table tennis player remains a mystery.

Smith, who leapt to the moral heights, was echoed by many Goldman Sachs clients, but not everyone looked up to him.

A new york-based investment banker, who declined to be named, told reporters that Mr Smith's challenge to Goldman was not to rule out the motives of investors in the market. ”

This is not the first time a Wall Street giant, represented by Goldman Sachs, rolls into the water vortex.

Spit Groove

"Why am I leaving Goldman Sachs?" Smith's more than 5000-word slot-length article was published in a column in the New York Times commentary.

Public data show that he was head of the U.S. derivatives business at Goldman Sachs in Europe, the Middle East and Africa, where Goldman Sachs, in its retort response, said Smith's head was vice president.

The response was sent to more than 30,000 employees in the form of internal mail, by Lloyd C. Blankfein, chief executive of Goldman Sachs, and Guery Kohn Laued Blankfing, chief operating officer.

According to the response, Goldman Sachs has nearly 12,000 vice presidents, which qualitatively Smith's view is "individual dissatisfaction with the status quo."

Smith doesn't think so, he thinks he's good.

From South Africa to Stanford University, he received a full scholarship, as the former captain of the South African table tennis team, but also in the Israeli Maccabi Games won the Bronze Table tennis competition.

"I have the privilege of being the world's two largest hedge funds, the top five U.S. asset managers, and the three most influential sovereign wealth funds in the Middle East and Asia as consultants. Smith said in the article, his client's total asset base is more than 1 trillion dollars.

Smith joined Goldman Sachs in 2001 after finished in the New York office for 10 years, during which Smith began ~2010 in derivatives sales, including asset management, sovereign wealth funds, pensions and hedge funds.

"Simply put, Goldman's current mode of operation and the idea of earning money have put clients ' interests at a secondary position." "But as one of the largest and most influential investment banks in the world, and with too much of a global financial sector, Goldman Sachs cannot do that," he said. ”

"There has been a lot of change in Mr Smith's view of Goldman Sachs compared to the Goldman Sachs he graduated from, and now I can no longer agree to this with a clear conscience."

This is a time to have the back of the war, the best of each other is like a table tennis game.

The public challenge was a few hours after the 27th edition of The New York Times, when Goldman Sachs posted its "front-page headlines" on its website.

"Everyone has the right to express their ideas, but unfortunately, the idea of individual Goldman Sachs is amplified through the press, and the impact is greater than the regular, detailed and focused feedback you give to the company, and beyond the impact of a third party's independent, open investigation into the state of the work environment." The response, mixed with a large number of second-person responses, was a "singled out" rage.

It is clear that this public shelling, which did not greet him in advance, angered Goldman executives.

Controversial

The core of Smith's discontent is directed at Goldman's "bloodthirsty".

"I've always thought that clients offer favorable investment advice, even if that sometimes means a relatively small profit for Goldman Sachs, but this view is gaining less support at Goldman Sachs, which is another reason I now decide to leave Goldman Sachs." He also revealed that some Goldman executives did not care about the client's earnings.

Although Smithtonian not cite the specific examples of Goldman Sachs deceptive to support its critique of the "mercenary" corporate culture, it does not affect the shock of the US investment financial world and the heat of the global media.

Through the New York Times, Smith put the "customer benefits" and "Goldman Sachs interests" this difficult to reconcile the eternal contradictions on the table.

"Thank you, Greg, for saying that. I've been a client of Goldman Sachs since 2006, but I've been trying to get the money back in recent years. "An investor from Birmingham, England, spoke in support of the Smith column and was recommended by more than 1000 netizens," he said.

"My money has been allocated to equity funds, which have been lagging behind the same kind of investment in the market, but Goldman Sachs has been earning my management fees because these investments have a 8-10-year deadline, so now I can't get the money back unless I'm willing to take on a huge ' cut ' loss." "The investor said.

Goldman's 2011 earnings show that its commission and management fees earned more than $3.7 billion trillion and accounted for more than 10% of the total revenue of 28.8 billion dollars.

Whitney Tilson Whitney Tilson, a hedge fund manager in the United States, is publicly standing on Goldman Sachs, "We are basically positive in our services and experience as an institutional client of Goldman Sachs, and most of the Goldman employees we've dealt with are very gifted with good higher education, And never felt that they were taking advantage of us. ”

If Mr Smith is willing to set up a column in the New York Times, readers must be looking forward to the 2.0 version-they want to know why Smith broke up with Goldman Sachs simply because the Tao is different.

"It's not clear what his underlying purpose is, but from a polite tone of voice, he doesn't care to offend Goldman." "The investment bankers said to our correspondent that Smith has earned a" wallet "at Goldman Sachs.

This person believes that this common "anti-Goldman", "anti-Wall Street" of the guard sentiment, it is entirely possible to win the approval of some market investors, "for him, as long as the funds, can even immediately become his own private equity." ”

Traceability

If Smith does not leave, who can guarantee that he will not become the next Quicou Adoboli (Kweku Adoboli).

UBS trader Adoboli was charged by the British police in September 2011 for abusing his power to defraud and falsify accounts.

As a trading-type Open-end Index fund trader, Adoboli is also a financial derivatives trader who worked for UBS's "Delta 1", which helps customers speculate or risk hedging on a basket of securities, as well as proprietary trading by banks, including ETFs in their derivative kits, Exchange transactions and Futures.

According to JPMorgan's estimate, Goldman has a relatively large "Delta 1" business, with 2011-year revenues likely to reach $1.2 billion trillion. After the UBS scandal came to light, Goldman immediately declared that it would close its famed global Alpha Fund for Hedge funds (Fund).

In fact, whether it's back to the origins of the US financial crisis 4 years ago, or to the incubator of excessive leverage in US capital markets, Goldman Sachs, standing on Wall Street, has been criticized in the eye of the storm for "Goldman's jealousy" and some for "Goldman's Conspiracy theory".

2010, a U.S. Senate investigation paper shows that Goldman Sachs in the subprime crisis, by shorting the U.S. real estate market to make a profit, and suspected of related financial products trading fraud, then the Chairman of the board of inquiry accused "Goldman Sachs and other investment banks are not just matchmaking market makers, but selfish to push the risk, Complex financial transactions, triggering the crisis ", when Goldman Sachs finished executives were asked to testify in Congress, eventually 认罚 550 million dollars to quell the dispute.

Public information shows Goldman Sachs Group's average annual equity yield of 20.2% per cent from 1999 to 2010, while the average earnings of JPMorgan, Morgan Stanley, Citigroup and other market peers were only 12.2%.

"From an institutional standpoint, Goldman Sachs has made no apparent mistake in maximizing market profits using its professional strengths, which is the fundamental goal of investors wanting to become Goldman clients." "But that, in turn, constitutes a conflict of interest between the minority and the majority in the social wealth structure, not only on Wall Street, but also not just Goldman Sachs, but what regulators can do is to use regulations to balance and control, to avoid the re-emergence of financial crises by institutional greed." ”

Since 2011, Wall Street has talked about the "Volcker rule" in the reform of the US financial bill, at the core of which is a ban on proprietary trading in the financial system, which means that banks are barred from using their own funds to carry out Volcker transactions.