NEW YORK, United States – An executive of Goldman Sachs publicly renounced the company by calling it “toxic” and disrespectful in an article published Wednesday in the New York Times.
“I can honestly say that the atmosphere now is more toxic and destructive than I had seen,” said Greg Smith in his “last day at Goldman Sachs,” which closed 12 years in the Wall Street firm.
Smith, who resigned as CEO of Goldman Sachs and head of derivatives business in America, the Middle East and Africa, explained the disintegration of the culture of the company during his stay.
Smith says the firm is more concerned with making money from their customers than making money for their clients.
“It sickens me how people talk about destroying their customers,” he writes. “In the past 12 months, I have seen five different managers refer to their customers as ‘muppets’ in internal e-mails.”
Goldman spokesman Michael DuVally, released a position that contradicts Smith’s diatribe.
“We disagree with the views expressed, which we believe it does not reflect the way we lead our business,” said DuVally. “In our opinion, we will only be successful if our customers are. This fundamental truth is the heart of how we behave.”
Smith also expressed disagreement with the firm for failing to correct the decline of its corporate culture, even after a series of scandals that put the bank under the spotlight.
“Even after the SEC, the ‘Fabulous Fab’, Abacus, the ‘Work of God’, Carl Levin and ‘financial vampires’?” He wrote. “Is there no humility? I insist that integrity has eroded.”
Smith was referring to investigations by the Securities and Exchange Commission United States against the bank for its role in the mortgage-backed securities in 2006, which plunged the housing market.
“The Fabulous Fab” is a nickname for Goldman trader, Fabrice Tourre, who was accused by the SEC of selling Abacus, a portfolio of real estate investments selected by the fund Paulson & Co, who had an interest in their failure. Tourre called himself “Fabulous Fab” in an internal mail, which emerged during the federal investigation.
Michigan Democratic Senator, Carl Levin led the Congressional investigation into Abacus.
“The work of God” is the job description of the CEO of Goldman, Lloyd Blankfein . “Financial Vampires” is the nickname that the writer Matt Taibbi of Rolling Stone gave the company.
Smith said the bank will not survive unless they correct their corporate culture despite the 143 years of history.
“I’m surprised how corporate leadership does not understand a basic truth: if customers do not trust you, eventually stop doing business with you. No matter how smart you are.”