The things that narcissists think but do not say....

Posted By Daniel W. Drezner Wednesday, March 14, 2012 - 3:29 PM Share

I think it's safe to say that the vampire squid Goldman Sachs brand has taken a few hits in recent years. To add to the calumny, Greg Smith, an executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa, is leaving Goldman today after publishing an op-ed in the New York Times explaining why he's leaving.  It's not pretty:

Today is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.

Man, that best-of-luck office party is going to be awkward. 

The fact that this op-ed has already spawned its own satire suggests that it's not going to have much of an effect on the larger debate on Goldman Sachs. Which is a shame, because such a debate would be pretty useful when thinking about Big Finance (though see Gabriel Sherman's excellent New York essay on this topic from a few weeks back). Indeed, this is a teachable moment for how to compose a memo, or a mission statement, or an op-ed that will provoke a deep debate over corporate culture.  Let's see where Smith went wrong: 

1)  He made it all about himself. The ostensible point of this exercise is to shine a light on a shady corporate culture that values sins over virtues. In these instances, the following paragraph should never appear: 

My proudest moments in life — getting a full scholarship to go from South Africa to Stanford University, being selected as a Rhodes Scholar national finalist, winning a bronze medal for table tennis at the Maccabiah Games in Israel, known as the Jewish Olympics — have all come through hard work, with no shortcuts. Goldman Sachs today has become too much about shortcuts and not enough about achievement. It just doesn’t feel right to me anymore.       

See how that was ostensibly about Goldman Sachs but was really about the author?  Not a good sign. 

2)  His job apparently required him to burrow out and reside in a large soundproof hole in the ground. Let's take a look at what Smith said about the halcyon, early days of his Goldman Sachs tenure -- i.e., when he started in 2000:

It might sound surprising to a skeptical public, but culture was always a vital part of Goldman Sachs’s success. It revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients....

How did we get here? The firm changed the way it thought about leadership. Leadership used to be about ideas, setting an example and doing the right thing. 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. 

Excuse me for a sec, I need to do this for a spell. 

Look, Smith should know the Goldman Sachs culture better than I do, but as an outsider, I am fairly certain of two things:  A)  Before Smith's op-ed, the terms "humility" and "Goldman Sachs" never appeared in the same sentence.... ever; and  B)  Making money was always how people got promoted at Goldman Sachs. 

There's been enough written about Goldman Sachs to know that by 2006, the firm had recognized that it was badly overexposed in the subprime market and decided to dump their holdings onto their clients. We know that in 2007, the firm went so far out of bounds that the SEC actually brought a civil suit against them, securing a $550 million settlement more than 18 months ago. And now Smith notices something is amiss??!! While the Wall Street Journal suggests Smith's role at Goldman wasn't pivotal, this kind of naivite requires a special kind of willful blindness. 

If you're going to be a whistle-blower, you need to acknowledge upfront your complicity in any malfeasance, be it legal or ethical. Smith's op-ed doesn't come close to doing this. 

EXPLORE:MEDIASPHERE, THUMBS, FINANCE, PUBLIC INTELLECTUALS
 

BLUE13326

9:13 PM ET

March 14, 2012

You probably already know

You probably already know this, but if you don't, check out what Goldman was doing leading up to the Great Depression (i.e. The Goldman Sachs Trading Corp) from Galbraith's 'The Great Crash, 1929'. They've been doing this for a very long time and will probably still be doing it long after we're gone.

 

IAN GRAY

12:24 PM ET

March 15, 2012

Criminals

Please read Senator Levin's investigation into this company. Goldman Sachs is a criminal enterprise, much worse than Arthur Anderson that was indicted.
http://www.scribd.com/doc/30667030/Wall-Street-and-the-Financial-Crisis-Exhibits

Goldman Sachs and other criminals on Wall Street like them are the primary funding sources of the neocon establishment, AIPAC, AZO, etc.
They provide funding, checks for chosen Representatives, etc, and, in return, they get protection from Washington D.C., laws and prosecution. Everyone in NY and Washington knows this. Just go to one of AIPACs fund raising events at Cipriani midtown in NY. Just look at their emails asking for funds for a specific candidate. It's like the mafia organization. You participate or you don't get protected.

 

BARKER13

12:28 PM ET

March 15, 2012

Not Quite Sure What Your Motive Is Here, Dan

Hmm...

(*SCRATCHING MY HEAD*)

 

CNW

3:01 PM ET

March 15, 2012

brushing off the flakes

I suggest that you ask specific questions. Vague commenting is not helpful.

 

BOBBLED

10:45 PM ET

March 15, 2012

Agree with Barker!

Wow, Dan Drezner. I usually enjoy your columns... but, what is driving this one? It does seem like there is some motive underneath the service.... like someone is greasing your wheels... lining your pockets! Pick your metaphor - this commentary is despicable - and seems motivated by some force that is not disclosed.

Have you ever worked in a major corporation? Well, I have. I'm still in complete shock that Greg Smith had the courage to do with he did.

You really should be ashamed of yourself.

WHISTLEBLOWERS (yes, Greg Smith is a whistleblower... even if the whistle was blown on GS long ago... no one has PENALIZED THEM FOR ANYTHING YET) need protection and support.... not public derision.

How dare you write this? It makes me think you must be part of the machine. Is everyone on the take? How far does the corruption extend?

Shameful. Absolutely atrocious.

 

BOBBLED

10:49 PM ET

March 15, 2012

meant

... motive underneath the SURFACE.

So shocked that I cannot properly proofread!

 

ALDEVITO

1:02 PM ET

March 15, 2012

Yes, Smith has a big ego

and he probably has a friend at the Times. But the fact remains that people will see his op-ed as a view from the inside and, thus, something that will carry some weight. However, I doubt that it will have any effect other then to be recorded as another instance of the greed of Goldman.

 

REALREALIST

1:05 PM ET

March 15, 2012

hahahaha....criminals! zionists! uh huh....

more like a disgruntled worker....goldman does a lot more right than wrong...come on people...this kind of sensationalism journalism is killing america...pandering to peoples worst instincts...using these types of stories for class warfare politics...kinda like the fluke thing with anita dunn being the boss of the PR firm that engaged her....I mean, does the left have no shame?

 

FREETHINKER12

2:23 PM ET

March 15, 2012

wow dude

Why the knee jerk defensive reaction?? no one mentioned zionists at all. Just because this guy is jewish along with most of the middle and upper management at goldman sachs doesnt mean you have to get so defensive. Just remember you brought it up.

Also there is NO GOOD that is done by goldman sachs, they are vampires and nothing more. Why do you feel the need to defend them? whats your agenda???

 

RMDUENAS

2:20 PM ET

March 15, 2012

Of course it is about himself

Everything we do is about ourselves to some degree or another... even the most generous, seemingly selfish acts. You should know this, since you so seem to so aptly analyze Smith's intentions. If you have any training in psychology, you could also analyze what are your deepest intentions in writing a disqualifying piece like this; if not, I suggest you ask a trained psychologist.

Smith's main purpose might be to sleep well at night, but it takes a lot of courage to do what he did, narcissist or not. Bashing him is just plain cowardice.

 

BOBBLED

11:12 PM ET

March 15, 2012

As usual

Taibbi gets it right:
http://www.rollingstone.com/politics/blogs/taibblog/a-goldman-executives-brave-departure-20120314

By the read...

Smith mentioned his previous successes as a way to illustrate his work ethic... as he states (if you read it, Dan)... he believes that success is a result of HARD WORK.

As opposed to what he has observed at Goldman... where DESPITE ALL THE WHISTLEBLOWING (if you can call it that), Smith has found the corporate culture to be disintegrating further. He actually LISTS all the previous instances where Goldman has been called out & publicly chastised... and, then shows that not only has it not stopped them... but also the culture is actually in an advanced state of rapid decline. He claims Goldman is even worst than before the previous societal disclosures of their corrosion.

Maybe you should reread it?

Don't people need the ability to comprehend what they read before they become professors and 'policymakers'?

I am appalled and saddened by what you have written here.

Meanwhile... Forbes, the WSJ and the usual suspects attempt to perform triage and discredit him (unsurprising), but wow... I didn't expect it from you. I hope people finally stop doing business with Goldman, the bankers leave in droves and young people stop applying for jobs with them.

Like Taibbi says - banks (corporations, I'd add) have to see the value in being trustworthy again... if they don't, we, customers, should discontinue doing business with each and every one of them until they see the light.

Greg Smith is a hero.

 

DISIGNY

8:48 PM ET

March 16, 2012

Excuses

For one who should know better, the Professor's attack on the Whistleblower was remarkably lame. But then, how could a defense of Goldman NOT be lame?!

 

MAXIMB

1:55 PM ET

March 20, 2012

It really shouldn't. We

It really shouldn't. We should not be entangled in the Middle East at all, and we should not be giving any of them money to help kill themselves. So, we should get out of Iraq, get out of Saudi Arabia, get out of Afghanistan, cut off all foreign aid to all of them, including Israel, and get our butts back home and take care of our own selves instead of sticking our unwelcome noses in everybody else's business all around the world..

"Is rio orange war always forfait sans engagement inevitable ?"
MaximB

 

Daniel W. Drezner is professor of international politics at the Fletcher School of Law and Diplomacy at Tufts University.

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