This is big. Most ex-Goldman Sachs employees still genuflect when they say the name Goldman Sachs. Greg Smith in a departing letter rips the place to shreds in the New York Times. Noteworthy, although he slings plenty of mud, he doesn't understand what really makes Goldman evil. He doesn't once mention the way Goldman plays footsie with government. He doesn't bring up at all the billions shoveled to Goldman by the Treasury and Fed, during the recent financial crisis. He doesn't bring up the fact that Goldman is a primary dealer licensed to deal directly with the Fed, which gives Goldman a major inside edge. He doesn't once mention the Goldman placement of key employees throughout the financial regulatory agencies, both in the United States and abroad. In other words, Smith is/was a minor league muppet at a very evil organization that he really still doesn't understand. The firm in many ways is cult like. From the absurd hiring process that no decent man with balls would ever subject himself to, to the overall culture. It's all about internal intimidation.
Read the rest here
Economic Policy Journal