I was reading the revelation of financial rape by Greg Smith repeated in several of our main media today. Well at least they concurred that it is important enough to report it more than once. The editors must have their conscience pricked. Greg Smith was a top player in Goldman Sach, New York. He was so disgusted by the rot in the company that he called it quits. And he found it his moral duty to reveal the unethical practices of the company.
Any clients of Goldman Sach reading what he wrote would shudder at the risk they put themselves into, at the hands of their most trusted fund managers. What Greg Smith was saying is that there were no morals, no ethics, except make money, and from the clients against the clients’ interests. The strong culture and integrity of Goldman Sach, a company he once idolatised, has been transformed into a greedy bunch of white collar ruthless manipulators to satisfy their own greed. The clients’ interest is last on their list. Better, exploiting the ignorant clients is their forte and main business.
Among the few things that Greg Smith mentioned, selling products that the company had ‘axed’ to unsuspecting clients. Getting clients to trade or churn to bring in the most profits to Goldman Sach at their expense. And trading illiquid and opaque products.
The whole culture of trust, serving the clients and making decisions to help clients to improve their positions, making money for the clients, are thrown into the rubbish chute. It is profit for Goldman Sach and its traders that is of prime concern. And getting the most out of clients is the main reason for existence than making clients rich. Clients are referred to as muppets, to rip their eyeballs out and getting paid by getting clients to trade regardless of risk.
Is it surprising? Or is there anything new? This culture of greed and irresponsibility, unethical misconduct, is the wine that flows through Wall Streets and all the financial centres around the world. Govts too are caught up by this craze and greedily swim along. The greed of govts is no lesser than the greed of Wall Street financial cheats. They are sleeping partners of crime against the innocent investors who put all trust to these crooks they thought could be trusted and will ensure that the right things are done in the right way.
They believe morality is still a virgin. The truth is that morality has long been turned into a prostitute, sold into prostitution by the greed of these power brokers, the people they trusted most.