Greg Smith is resigning today as a Goldman Sachs executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa. -- NYTs. 3-14-12
This fine young South African, finalist in the Jewish Olympics (in ping pong), and Stanford graduate and Rhodes Scholar finalist, had been pushing little bundles of derivative joy originating in the US -- and who knows? some securitized mortgages perhaps right here in Merced -- all over Europe, the Middle East and Africa. Then, for some reason, he quit and wrote this letter that is presently costing Goldman Sachs, his former employee, billions. He says the culture of his former investment banking firm is "toxic and destructive." We wonder, given his background and advantages in life, how he came to this remarkable conclusion. Could it be that one or a number of his clients became disgruntled with the securities he was selling them when homeowners began successfully challenging banks in court to produce proof of who owned the mortgages swaddled up in the sweet smelling derivatives.
Badlands Journal editorial board
New York Times
Why I Am Leaving Goldman Sachs
By GREG SMITH