You're watching...
Former Goldman Sachs Executive Director Greg Smith on his decision to leave his position at the bank.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Is a ghost town and shut down we are up and running of course talking business and one of sort of the hottest inside business stories lately has been about Goldman Sachs and the book that is written by one of their former insiders.
Quote toxic and destructive those -- the words my next guest uses to describe the culture.
At white -- high finance giant Goldman Goldman insider Greg Smith tore apart the company's ethics and questioned its integrity.
When he sent his resignation letter as an op Ed in the New York Times.
The and there it is and the -- that was called why I am leaving Goldman Sachs joining me now former executive director and VP of Goldman Greg Smith.
Well that was a heck of an exit email they usually say hey here's -- here's -- -- -- helped define me yours was a gigantic.
Punch in the nose attempt at Goldman Sachs and so here's this book -- I have to tell you I have been reading and I'm not entirely through with that but -- several hundred pages and and it's really took 265 pages -- And leading up to -- I'm thinking this a great place to work the way you're describing Goldman what turned Q what was the switch -- flipped where you turn around and said.
I can't be here anymore I'm gonna right this very -- -- doesn't.
Well the -- when housing cottage twelve years ago Goldman Sachs was the most prestigious place to work it you know for anyone who wanted to get on Wall Street it was really.
Most admired company it took Ford public took serious public it was an iconic found.
And had fourteen business principles and I was very proud to work they're used to flat to stamp it twice a year I used to recruit kids to come.
Banks as we approach the middle of the decade and you'll know a variety of -- -- regulations occurred Glass-Steagall was repealed.
Derivatives -- deregulated and banks in 2004 were allowed to take maximum leverage and I think Coleman started realizing it could make more money by using its clients' information to -- for itself.
Then actually collaborating with clients is seeing them as apartments.
You know you can even if you look at revenues Goldman's trading revenues in 2002 a five billion by 2007 -- 32 bit and so.
That their revenues change and the mindset shift in the -- had chips and in about a time the crisis comes along Goldman survives.
And then you have advocates the SEC sues Goldman for.
What is the biggest frauds in history Goldman settles and I write about in the book my inclination is still to defend the found.
That what once it took a hard look at what actually happened and how the firm misrepresented its interest to clients.
I actually wanted the -- to -- respect and Goldman went through -- on study where.
It -- its practices and I saw that to be pure lip service and over the -- before I left I spoke to.
Nine to from partners -- traveled in Europe from Switzerland to Italy to fronts and over and over again Klein said to me we don't trust the -- yet I've got back to London and speak to partners and I didn't care that no desire to patch up this this trip you.
