Monday, April 15, 2013
Date: 14 April 2013 07:00
Producer: Esté de Klerk
Presenter: Devi Sankaree Govender
Show: Carte Blanche
Wall Street, New York City - the exemplar of power, money, wealth... It's the centre of commerce and the financial capital of the globe, home to the largest financial markets in the world - the Nasdaq and the New York Stock Exchange.
And if you're serious about being a mover and shaker in the financial world, this is where you want to work.
It's where Greg Smith found himself at the age of 21, when he was employed by one of Wall Street's most distinguished banks, Goldman Sachs.
Devi Sankaree Govender (Carte Blanche presenter): "Place Goldman Sachs into context, who are they?"
Greg Smith (Former Wall Street investment banker): "Goldman Sachs currently and frankly 12 years ago was the biggest, most prestigious investment bank in the world. So when I got a job there, it was a great, very happy day for me."
But it didn't come easy for this matriculant from King David School in Linksfield. He grew up in Edenvale in the east of Johannesburg in a middle class family and had to get a scholarship to study. With eight distinctions he was one of only 32 applicants around the world to win a full bursary to Stanford University in California.
Greg: "When I was at Stanford, Goldman Sachs was what people would call the Rolls Royce of investment banks. They took big companies like Microsoft public, Sears, Ford and it was really a golden name and what I would say a lot of people strived for."
As did Greg, after he interned at Goldman Sachs in his final year at Stanford. Only one in 45 candidates who apply is employed. When he got the job, it seemed to him that things couldn't get much bigger or better.
Thursday, April 4, 2013
Ex-Goldman Sachs trader faces fraud charge after surrender to FBI
Matthew Taylor expected to plead guilty amid accusations he defrauded firm by concealing a $8.3bn futures bet gone wrong
Dominic Rushe in New York
guardian.co.uk, Wednesday 3 April 2013 12.10 EDT
A Goldman Sachs sign on the floor at the New York Stock Exchange. Photograph: Brendan Mcdermid/Reuters
A former Goldman Sachs trader surrendered to FBI agents Wednesday amid accusations that he concealed a $8.3bn futures bet that went wrong.
Matthew Taylor surrendered to the authorities at 8.30am on Wednesday and was scheduled to appear in federal court in lower Manhattan where he is expected to plead guilty to securities charges.
Monday, December 31, 2012
The four business gangs that run the US
ROSS GITTINS December 31, 2012
Illustration: Michael Mucci.
IF YOU'VE ever suspected politics is increasingly being run in the interests of big business, I have news: Jeffrey Sachs, a highly respected economist from Columbia University, agrees with you - at least in respect of the United States.
In his book, The Price of Civilisation, he says the US economy is caught in a feedback loop. ''Corporate wealth translates into political power through campaign financing, corporate lobbying and the revolving door of jobs between government and industry; and political power translates into further wealth through tax cuts, deregulation and sweetheart contracts between government and industry. Wealth begets power, and power begets wealth,'' he says.
Sachs says four key sectors of US business exemplify this feedback loop and the takeover of political power in America by the ''corporatocracy''.
First is the well-known military-industrial complex. ''As [President] Eisenhower famously warned in his farewell address in January 1961, the linkage of the military and private industry created a political power so pervasive that America has been condemned to militarisation, useless wars and fiscal waste on a scale of many tens of trillions of dollars since then,'' he says.
Second is the Wall Street-Washington complex, which has steered the financial system towards control by a few politically powerful Wall Street firms, notably Goldman Sachs, JPMorgan Chase, Citigroup, Morgan Stanley and a handful of other financial firms.
These days, almost every US Treasury secretary - Republican or Democrat - comes from Wall Street and goes back there when his term ends. The close ties between Wall Street and Washington ''paved the way for the 2008 financial crisis and the mega-bailouts that followed, through reckless deregulation followed by an almost complete lack of oversight by government''.
Wednesday, April 4, 2012
Goldman Sachs Engaged in Secret Re-Titling Into Goldman's Name Alone of Over 20 Million Shares Owned by Marvell Founders
March 28, 2012, 8:00 a.m. EDT
New Evidence Reveals Goldman Sachs Engaged in Secret Re-Titling Into Goldman's Name Alone of Over 20 Million Shares Owned by Marvell Founders
SIMILAR TO MF GLOBAL'S ALLEGED USE OF CLIENT FUNDS, NOW THE SUBJECT OF CONGRESSIONAL INVESTIGATION, GOLDMAN SACHS SECRETLY INSTRUCTED STOCK TRANSFER AGENT TO OBTAIN TITLE, WITHOUT CLIENTS' PERMISSION, TO CLIENT SHARES INTO GOLDMAN SACHS' NAME ALONE
SAN FRANCISCO, March 28, 2012 /PRNewswire via COMTEX/ -- The founders of Marvell Technology Group MRVL -1.45% , Dr. Sehat Sutardja and Ms. Weili Dai, are preparing to amend their claim filed with the San Francisco office of the Financial Industry Regulatory Authority (FINRA) against Goldman Sachs GS -1.75% and two account executives, alleging Goldman Sachs defrauded the two Silicon Valley executives of several hundreds of millions of dollars in the midst of the 2008 financial crisis. At that time, Dr. Sutardja and Ms. Dai were two of the largest victims of fraud by Goldman's Private Wealth Management Group. Today's breaking news reveals there will be an amended FINRA Claim based on new evidence that Goldman Sachs engaged in secret re-titling into Goldman's name alone of over 20 million shares owned by two founders of Marvell, Dr. Sutardja and Ms. Dai. In a series of transactions eerily similar to MF Global, currently under Congressional investigation for misusing client funds, the amended FINRA Claim will allege Goldman Sachs secretly instructed the stock transfer agent to obtain title to the Marvell shares only in Goldman Sachs' name, without their clients' permission.
Recent information revealed Goldman Sachs re-titled over 20 million shares of its clients' Marvell stock so that, as will be asserted in the amended FINRA Claim, Goldman could trade on its own account, create a market for its affiliated hedge funds and, ultimately, recapitalize its accounts to be used to help save the Firm from financial ruin at the height of the 2008 financial crisis. In the midst of a financial crisis, the FINRA Claim contends Goldman put its own interests ahead of its clients' interests.
A linchpin of Dr. Sutardja and Ms. Dai's FINRA Claim is the allegation Goldman unlawfully re-titled into Goldman's name alone over 20 million Marvell shares owned by Dr. Sutardja and Ms. Dai without client knowledge or authorization. Newly discovered hard evidence establishes this claim. It is questionable whether, under federal regulations, a brokerage firm is permitted to cause a client's shares to be placed in the brokerage firm's name absent the express consent of the client. It was not until April 2011 that Dr. Sutardja and Ms. Dai discovered Goldman's re-titling. Thus, Goldman Sachs had over 20 million shares in its name alone from January 2008 to April 2011, even though the shares were actually owned by its clients.
Saturday, March 17, 2012
Wednesday, March 14, 2012
Why I Am Leaving Goldman Sachs
By GREG SMITH
Published: March 14, 2012
TODAY is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.
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To put the problem in the simplest terms, the interests of the client continue to be sidelined in the way the firm operates and thinks about making money. Goldman Sachs is one of the world’s largest and most important investment banks and it is too integral to global finance to continue to act this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for.
Wednesday, February 22, 2012
|Goldman Sachs Lloyd Blankfein lunching with|
Bill Clinton at the Boca Raton Resort And Country Club 2/19/12.
This picture speaks for itself. 'Nuff said. More here: