Wednesday, May 5, 2010

Goldman clients staying put

It has been nearly three weeks since the federal government stunned Wall Street by bringing civil fraud charges against Goldman Sachs.

Since then, the firm has endured a firestorm of criticism and a rash of lawsuits But so far, that has done little to scare off long-standing Goldman customers.


Looks like people still trust Goldman.

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7 comments:

  1. Ben MinkoffMay 5, 2010 at 9:27 AM

    Heres the Link

    http://money.cnn.com/2010/05/05/news/companies/goldman_clients/index.htm

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  2. Noah OesterleMay 5, 2010 at 1:20 PM

    "In an effort to prevent further fallout, Goldman employees are believed to be actively reassuring clients across their various businesses, downplaying claims made by the government."

    That line to me sounds just like what they have been doing all along. If people were brainwashed before, it will take a whole lot to change their mind if they haven't already.

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  3. Ashlee SteudleMay 5, 2010 at 1:31 PM

    This article reinforced a few of the things that Dr. McKinney brought up in class. It seems clear that "Goldman is still viewed as the firm to beat on Wall Street, with arguably the best stable of talent and the impressive network of contacts that come with it. That has been hard to ignore for many companies -- especially those looking to go public." American investors don't seem to be particularly concerned with their choice of investment firms. However, "A handful of clients have already cut ties with the firm altogether, according to reports, including German commercial lender BayernLB". As we were discussing in class, the fallout against Wall Street will most likely come from foreign companies. Interestingly enough, we are already seeing some of this international response to the legal allegations. Here for example from Germany.

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  4. KelseyMay 6, 2010 at 12:01 AM

    Of course people still trust Goldman. They are the leading Wall Street firm for a reason. This bad publicity is going to do little to harm them, and that is why I think that a break-up would be better. It will be interesting to see if any of the law suits will be won...

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  5. DanaMay 6, 2010 at 12:12 AM

    The line that Noah quoted also stuck out to me from reading the article. How are you supposed to "downplay" the truth? We already know that consumers were led to believe that CDO's were a good thing, just buy them, they're safe. And here, Goldman is trying to mislead them once again into thinking there is nothing wrong. Some people will really fall for this twice I guess but it's good to see that several are reconsidering and getting out now.

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  6. BryanMay 6, 2010 at 9:35 AM

    Yeah I agree that they were hurt very little. Everyone still knows they have some of the brightest people and are on track for success. However, it just bothers me because they have such smart employees I wonder if they will always be able to come up with new instruments and financial techniques that will make them prosper even if they have been and will continue to be extremely unethical. What can you do against such a strong bank? Unless they really step off the track here and risk more of the taxpayers' money I don't think we will see them go away.......

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  7. k06rl01May 8, 2010 at 1:54 PM

    Goldman has proved they are one of the best on Wall Street,managing to make a significant recovery from the financial crisis, while others fell victim to it. Although they have received a significant amount of bad press and accusations surrounding the financial crisis, they are still a very powerful and well respected firm. This article points that out showing that even with the losses of a few deals they are still maintaining a large share of the market.

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