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http://money.cnn.com/2010/05/11/news/companies/goldman_sachs_obligation.fortune/index.htm
This is an interesting article and video regarding the opinions of Goldman Sachs shareholders. Although there still seems to be mixed emotions about Goldman's behavior, it definitely shows that people are becoming more aware about what has happened and are showing heightened levels of interest. Do you think the growing involvement of shareholders will help the S.E.C. in their suit or will it simply be another miniscule issue for Goldman to overcome?
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With Goldman under alot of heat for accusation of fraud and misleading investors it is not suprising that goldman would look to change some of its policies to show its investors they are taking action to provide better management regulations and like adam said shareholder involvement.
ReplyDeleteI agree, I think shareholder involvement is a big step because if they participate on a large enough scale they can really change the course of the company. I don't think this particular action will revolutionize the firm's business plan though, it is just too profitable and that is why the shareholders bought shares in the first place.
ReplyDeleteI think it will be a small issue for Goldman to overcome. Ethics and Law, in this case, fall under different standards. Goldman did not act ethically, but of course if they are making money, even shareholders will defend their actions if the price is high enough. But at least it is a step in the right direction.
ReplyDeleteI definitely think that this will not change very much. Shareholders may want to intervene, but like Tommy said-if they change too much they may lose out on profits which are what interested the shareholders in the 1st place.
ReplyDeleteI agree with the previous posts. The issue of shareholder interest should change some policies. Goldman Sachs will want to show investors that it cares about its shareholders to a certain extent, therefore ensuring that people will continue to invest in their company. But those changes will be minimal. Goldman has the power in the market place...and politically...to continue with its current practice regardless of public opinion.
ReplyDeleteI think the shareholder involvement is absolutely critical. The profit incentive - the thing that allegedly motivated these managers into taking risks and possibly breaking the law - directly comes from the shareholders. If the shareholders send a message to management that this is not what they want, this may end up not only affecting this case but also changing the culture of Wall Street.
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