Greg Smith’s Salary And Lloyd Blankfeins Future At Goldman Sachs (GS)

FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports that former Goldman Sachs Group, Inc. (NYSE:GS) Vice President Greg Smith caught his employer “completely flat footed” with his resignation Op-Ed in the New York Times today. Gasparino went on to say Goldman Sachs Group, Inc. (NYSE:GS) CEO Lloyd Blankfein thought his “legal problems” were over, and he was telling associates he wanted to stay at the firm “another couple of years, and then this happened.”  Allegedly, Smith is “sour grapes” because “he didn’t make the MD cut” within Goldman, and “never made more than $750,000 a year.”

Excerpts from the report are below.

On the impact of Greg Smith’s letter on Goldman Sachs and CEO Lloyd Blankfein:

Michael Mauboussin: Here’s what active managers can do

michael mauboussin, Credit Suisse, valuation and portfolio positioning, capital markets theory, competitive strategy analysis, decision making, skill versus luck, value investing, Legg Mason, The Success Equation, Think Twice: Harnessing the Power of Counterintuition, analysts, behavioral finance, More Than You Know: Finding Financial Wisdom in Unconventional Places, academics , valuewalkThe debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More

“Goldman Sachs is on the road to a record profit for the first quarter. Blankfein is telling friends he thinks he could; he wants to stay, another couple of years. He believes the pressure is behind him, the legal problems are over, and then this happens. Wall Street executives are saying with Goldman Sachs clients it will have a marginal impact, thought they think they story further erodes his public images. The clients know, Goldman screws its clients, they still do business with Goldman Sachs.”


On Smith’s status within Goldman Sachs:

“He is has been a 10 year Vice President. That may sound good in middle America but on Wall Street that means he didn’t make the MD cut. A little sour grapes there. He wasn’t a major player. He has never made more than $750,000 a year.”


On whether Goldman Sachs was anticipating Smith’s Op-Ed:

“Goldman never saw this coming. They were caught completely flat footed.”

On whether a book deal is on the horizon for Smith:

“A major publishing house is interested in a book deal for his experience; they contacted me to find out where he is.”