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FBN's Charlie Gasparino on the NYTimes op-ed by former Goldman Sachs employee.
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A lot of people talk about this editorial that was in the New York Times this morning this guy Greg Smith -- works at Goldman Sachs until today he's resigning.
And he writes and editorials is blasting what he talks about as a toxic and destructive.
Environment at Goldman.
Fox business's senior correspondent Charlie Gasparino is covering this story for us your reaction well I mean how -- -- -- well let's just which is.
Just put a little bit of perspective.
Goldman never saw this coming we should point out neighbors and had no idea this was getting so they were completely there were -- completely flat footed.
But here's what we do -- I hadn't I've made some calls feel that worked with would Greg Smith.
And we're gonna reach out to Greg -- and try to get his reaction to this -- -- -- the New York Times apparently got its title he does not head.
The equities derivatives business in Europe and Asia blah blah blah he's of vice president.
It's been a ten year vice president now that.
On Wall Street that may sound good middle America wall sure means -- didn't make the MD cut managing director right so that means you know life.
Little sour grapes here -- at least that's what the people at Goldman is saying that said.
I talked to couple institutional investors until the people -- they all basically agree with the sentiment.
We should also point out that I know for a fact that a major publishing house is interested in a book deal for hundreds of spirits -- -- I go I know because they contacted me to find out where you see you quit in a very public -- and get a book deal make sure you have another just how tonight you know -- you know.
More power to put we should point out this.
I've -- -- Goldman for now.
You know and that -- migrate my great -- about 22 years.
Tom this is not new I've written four books that basically said the same thing.
There hasn't been a guy that affected though from Goldman has status that it's every institute was that I -- -- as Larry Fink who runs BlackRock.
Why are you on the board of the New York Stock Exchange this was free electronic trading when it was specialist.
When orderly wind would a lot of investors and Susan -- just wanted you know hit a button due to.
Because they trust the specialist and he said because I don't trust Goldman Sachs.
I don't want the guy at Goldman Sachs to be making the markets in the stocks and need to buy because they usually rip us off that they they don't have they don't treat their customers well.
And that's a sentiment among every institutional -- right now so this is not new what's new about it clearly.
Is that I've never seen a guy defect.
And and you can be dismissed.
About about the the -- affecting about a particular -- I mean this is a big firm.
There's a firm has been on the tremendous pressure the last couple years.
But we should point out to be fair to be fair to Goldman yes a lot of stuff he says is true there's a degree of celebration no doubt you that are ten years as a vice president.
So you don't you don't make NB.
You're going to be mad that means your boat that's not just -- always been -- your bonuses are capped right he's not he probably didn't make a good -- -- this year.
And he is not the head of equities to -- equity derivatives which what they said the times and that's what they cited as his title in the times.
Copyrights is not it's it's one of the things I think -- about it is that.
He he speaks about individuals at the firm now -- said it's always been this way and you know Hank Paulson and Jon Corzine always deeply speaking about both Blankfein and -- the guys running now.
And basically saying that -- culture's changed in the last well number along.
I figure I I don't necessarily agree with that I I mean I think this has been a sort of and evolution at Goldman.
Where remember what what used to be an investment bank and that's banking staff clients that they did emanate deals for corporate finance from one type.
The news to trade on the other hand some -- trader and so with those clients -- sometimes trade against those clients because you've taken a different -- and they are.
Goldman Sachs.
It's been -- it listen to -- I believe this Begin on the Paulson but it began on the Paulson went Blankfein was rising up through the ranks with the traders started running the show.
The it became like a big hedge fund and if you look at what we -- we get in trouble for in Alaska we're set abacus -- -- -- deal where they sold.
Bad securities to their clients now they didn't misrepresent those securities he -- here's the pool securities.
But they were -- were selling something that was bad that somebody else was shorting John Paulson right the big hedge fund manager.
And what a lot of people said is like the old Goldman probably would have gone that far.
To just sell that now -- delighted that -- -- in light of the clients but the fact is they didn't care that they were selling some -- whatever that whatever was called.
To their to their best clients and that's the culture -- Goldman.
There are obviously trying to change that after that trade and many others.
I don't know if you could change -- -- -- in there because you know Lloyd is hooey isn't Gary -- these these guys come from the trading side.
But you know we're gonna hear more about this and out like I said I think here's -- -- with this article to -- the example.
Why did -- bring up abacus so I so this yeah there's issues here with this article but I tell you the sentiment among institutional investors this -- right on.
Bottom cinematic Goldman which has a lot of credence -- -- salary dot Charlie thanks thanks -- and Charlie Gasparino.
