In what is probably being described today by members of the financial services industry as a leak of insider information, retiring Goldman Sachs director Greg Smith provided a rare glimpse into the dark corners of Wall Street where those in control make decisions affecting the financial futures of investors planet wide.
Smith’s op-ed article in the New York Times today indicates that the financial industry problems leading up to the 2008 crash are far from over. While I suggest you read the article yourself, here are some of his observations after his 12 years with Goldman:
- “I can honestly say that the environment now is as toxic and destructive as I have ever seen it”
- “the interests of the client continue to be sidelined in the way the firm operates and thinks about making money”
- “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.”
- “Today, if you make enough money for the firm (and are not currently an ax murderer) you will be promoted into a position of influence.”
- “…get your clients — some of whom are sophisticated, and some of whom aren’t — to trade whatever will bring the biggest profit to Goldman.”
Considering his position as head of Goldman’s US equity derivatives business in Europe, the Middle East and Africa, investors who have purchased any Goldman derivative products are probably having a little trouble sleeping right now.
Smith goes on to say:
- “It makes me ill how callously people talk about ripping their clients off.”
- “will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact.”
Thank you Mr. Smith for the insight. Thanks even more for the warning.
Investors take heed.
If you have questions about the way your brokerage account is being handled or investment losses you have suffered, please do not hesitate to contact us.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900