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Goldman Sachs COO Gary Cohn on the firm’s program to help small-business owners.
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-- -- banking giant Goldman Sachs.
Is about to make news on our air while they often finance deals involving the biggest businesses in the world today.
They're putting money behind the smallest of businesses -- it was congratulations we did it.
-- -- -- Right they are celebrating these -- -- -- -- the first 36 graduate of Goldman's 101000.
Businesses small business education program.
Got their diplomas in Cleveland today our own list claim it has -- there.
-- a wide ranging interview now with Goldman Sachs president and chief operating officer -- home list.
Well the -- David forget Wharton.
Business school tried university of Goldman Sachs yet today.
The members of the very first graduating group of the 101000 businesses program of Goldman Sachs.
Graduated here at Cuyahoga community college in Cleveland did.
I'm joined now by one of the guys who actually got to give them that intellectual push its Gary -- he is the president and chief operating officer.
Of Goldman Sachs thanks for being here this is my pleasure well it is I mean I saw you what -- -- because 36 small business owners.
Got up there and graduated after an eleven week program -- what if -- learned that's better than say at Columbia MBA -- something from Harvard.
I think quickly learned is they learned practical realities.
Of running a small business it's not just the eleven weeks of classroom work which was long days on the -- of class -- As you can tell from the 36 graduates that -- up there.
They actually became colleagues with each other and they used each other's goods -- used each other services.
They -- each other they've mentored each other and they help each other through a variety of problems and issues that they'll have going forward well that.
-- -- bounced off each other but you guys put together the curriculum.
He used that the Community Colleges in the -- different cities such as New York LA Salt Lake Cleveland etc.
Chicago.
-- I spent.
More than a year putting together the curriculum and other there's something some secret sauce in there or something because immediately.
Within a couple of weeks a lot of these businesses.
Were already improving their revenues and hiring.
What isn't how to put it together.
While we put it together through a lot of hard work as you know these programs just don't happen there a couple years in the making.
We teamed up with Babson.
To really come up with a spectacular curriculum for these individual scholars and then we putting together with Goldman Sachs DNA.
We had many Goldman Sachs people involved in this in fact there were over.
2000 hours of Goldman Sachs employee time put into what program an example say for example you're doing -- tax class and how to deal with that who was teaching -- I'm not sure who Todd Cleveland class but it could be a tax expert it could be tax expert from Goldman Sachs.
It could be a tax expert from -- the major accounting firms it could be a tax partner it'll it'll offer someone of that caliber with that level of knowledge and breath came in and talk that class for ten hours -- -- -- it's it's rail.
Practice not necessarily just theory which is what is sometimes -- get -- in Warren Buffett is famed for saying that business school isn't really necessary this -- -- accepting.
Obviously that he liked because you've got him to sit on the advisory council even came here -- spoke to some of the graduates.
And there -- the people who -- in the class and I thought to myself.
We've covered Warren -- a lot he has told me he doesn't like sitting on boards he doesn't like doing charity event the fact that you've -- to do this will have to sell them -- -- Mall businesses growing America Warren Buffett's all about growing opportunities growing jobs in growing the economy in the United States.
We went to -- with this idea he loved it it the first moment he sought because you realize the economic impact of really affecting small businesses in the United States.
You know small businesses.
Have been through thick and thin and a lot of them lately to Goldman Sachs.
One would argue has been through tough times during the financial crisis -- -- the quarterly numbers is where wanna get to the business questions of of what's happening.
Christ killed -- you did extraordinarily well.
In some of the older businesses like trading investment banking what message does that send about doing business -- tough times answer tighter regulations.
We had a good year last year it especially considering the environment we're in last year.
But we had a good year by being true to our strategy.
We understood what our strategy who is we understand -- a strategy was back last year.
We understand more customers are we understand what our customers need that we delivered to our clients and we believe through the whole process.
Although other people question that we've -- very sound strategy.
-- let them but my point is that there are a lot of bankers not necessarily you who complained bitterly about.
How can we possibly make of the money if we can't take the risks because of this -- that role.
You guys managed to do it so can you move forward and say that no matter what the environment if we hire Smart people we can figure this out absolutely.
We continue to hire Smart people.
We continue to execute we continue to deliver for our clients we're gonna continue to do well fresher or some of these numbers that looked so good you got the by slicing and dicing compensation in certain regards are -- done without you pretty much set on cutting compensation and when you do something like that does it affect your ability to recruit.
We made lots of different changes in our business over the last five years it's not just compensation.
Its -- its geographical footprint it's outsourcing its scope moving into higher value -- -- -- for funny fifteen I don't know for every dot.
It's one of those things and our business that it's always difficult to predict if -- -- what sites you need to be I've I've said this many times before were never perfect size.
We're too big at the -- that the bottom we're too small to top.
We're never just in that perfect moment where -- right size so we'll continue to modulate the size of our firm based on the opportunity.
Is Goldman right sized for a healthier housing market what about the Fed what about interest rates -- they eventually tighten coming up right after the play break war with Gary -- of Goldman Sachs Alaskan all of that.
And so much more state --
