Why is there Resentment Towards Goldman Sachs and their String of Success?

So just read Vanity Fair’s, Bethany McLean’s 8,500 word profile on Goldman Sachs in which she claims “One of the biggest disconnects on Wall Street today is between the way Goldman Sachs sees itself (they’re the smartest) and the way everyone else sees Goldman (they’re the smartest, greediest, and most dangerous).” Within the article she outlines the Goldman culture and the shift in the firm’s way it deals with clients and how in her opinion all they care about now a days is MONEY!!! Here are my opinions on the article.

What is Wrong with Profits?

I say this because this constantly seems to be the number one critic of Goldman, they make to much money. What is wrong with profits? Shouldn’t we be standing by Goldman congratulating them on reporting $17 billion in profits? Nope instead we are bashing them claiming Goldman was the result of this financial Armageddon and frankly it’s not true. Goldman wasn’t the problem, plain and simple. Luckily enough they did not become a causality of the crisis like Lehman and Bear Sterns. This crisis was caused by excessive greed and risk taken on by numerous amounts of banks. Thousands in fact. Frankly Goldman was the smartest of the group shorting all mortgage back securities back in Summer 2007. Yes Goldman was seeing the signs of the collapse before everyone else and they capitalized on it making boatloads of money. Is this unethical? Nope it’s just the result of having top-tier talent and being surrounded by the Wall Street Elite.

Did Goldman Manipulate the System?

People love to hate success. We see this with the array of comments coming out attacking Goldman personally. “They say Goldman was responsible for huge systemic risk, and now they’re trying to pretend they weren’t.” Blankfein did address this issue and issued a public apology: “We participated in things that were clearly wrong and have reason to regret.” People were outraged his admittance though frankly it should have been joined with the CEO’s of over 1,000 other financial institutions that participated in the same risky ventures. As for playing the system, no Goldman made a bold predication when others doubted the market would continue to fall. Did they make money? Yes but how can we punish them going out on a limb.

Why Does Everyone Loves to Hate Goldman Sachs?

I believe that Goldman gets bashed now days for their string of success and secrecy. In the last decade or so the U.S. has shifted to resent success and people who makes lots of money. We are leading into class warfare between the haves and the have-nots and Goldman is deep in the trenches. It quotes like this that I resent.

“It’s a fear that, as one person puts it, Goldman’s “skill set” is “walking between the raindrops over and over again and getting away with it.” It is a fear that Goldman has the game rigged, even if no one can ever prove how, not just because of its political connections but also because of its immense size and power. And it is a belief that despite all the happy talk about clients and culture (and, boy, is there a lot of that) the Goldman of today cares about one thing and one thing only: making money for itself.”

First Goldman deserves every dollar they make, the reason they are so successful is they go the extra effort, put in the hours, and hire the best of the best. They have developed a unique culture, characterized by impossibly hard work, loyalty, and secrecy.

“I worked there as an analyst for three years in the early 90s, and I remember that most people couldn’t take advantage of the long line of black cars that waited until midnight outside 85 Broad Street to take them home. Instead, they had to call for cars, because they never got out early enough. I also recall being told that having a tan in the summer was a bad sign, because it meant that you weren’t working hard enough.”

Looks like those extra hours and hard work have paid off and that average $700,000 annual bonus per employee is well deserved. The other huge concern other than money is the secrecy of Goldman’s culture. Yes Goldman is followed by huge conspiracy theories that secretly they control the U.S. Economy. Adding to this are the concerns that we don’t know how they make all that money, as no one can understand their Financial Statements. More to the problem is the government is infiltrated with ex-goldmanites. The last two Secretary’s of the Treasury along with half the fed, an array of senators, representatives, etc. Is it their fault that these people still have strong feelings to the company that launched their career? As a result Goldman does get the benefits being helped out by its huge list of powerful alumni. How can we stop these people from helping out?

Goldman Doesn’t Care About its Clients

Goldman was founded on 14 principles, the first “Our clients’ interests always come first.” Has this thought process shifted under the new regime? Has money become the number one interest? I say no, this is not the same time as the 1890s when Goldman was founded. The commercialized economy has made Goldman into what it is, plus if they didn’t care about there clients then why do they all keep coming back? Its because Goldman is the best.

“And while some say they do business with Goldman because the firm’s omnipresence means they have to, there is another reason, which even its most bitter critics concede: Goldman is better. Why is that? I ask a hedge-fund manager who has just finished his own heated explanation about how he doesn’t trust Goldman. “I can’t really tell you why it’s better. It’s just better,” he says. “It’s six p.m. in New York City, and Goldman will figure out how to get the right person in Hong Kong—a guy we’ve never spoken to—on the phone to walk us through exactly what we want to know. He’ll be fully knowledgeable.” He laughs. “Try the same thing with Citi. They can’t even figure out what they know, let alone how to take advantage of it.”

So go right ahead have your resentments, hate Goldman’s success as in my opinion it only makes them stronger. We need someone in this country striving for perfection, success, defying all odds. Honestly all in all a strong Goldman Sachs is good for the country.