Government Sachs

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Today’s required reading would be this very long London Times profile of Goldman Sachs and its CEO, Lloyd Blankfein. Ominously titled, “I’m doing ‘God’s work’. Meet Mr Goldman Sachs,” the feature takes readers into the inner sanctum of the company Rolling Stone’s Matt Taibbi described as, “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

The scariest part, of course, is the manner in which Goldman Sachs has insinuated itself into the very vitals of our government. The whole piece is a must-read, but this jumps out:

The firm is the greatest talent network in the world. Unlike at other banks, top performers are encouraged to get on, make all the money they will ever need in their thirties, then get out to “do good”. The average tenure of a partner is eight years. “You don’t join for the retirement programme,” says one staffer. “You have your phase of the moon to make money and then f*** off.” But doing good does not mean running an HIV clinic in Kinshasa, it means getting top jobs in treasuries, central banks and stock exchanges around the world. The list of former Goldman executives who have held key posts in the US administration and vital global institutions in New York and Washington alone is mind-boggling. It includes: the treasury secretary under Bill Clinton (Robert Rubin); the treasury secretary under George Bush (Hank Paulson); the current president and former chairman of the New York Federal Reserve (William Dudley and Stephen Friedman); the chief of staff to the treasury secretary Timothy Geithner (Mark Patterson); the chief of staff under President Bush (Joshua Bolten); the economic adviser to the secretary of state, Hillary Clinton (Robert Hormats); the chairman of the US Commodity Futures Trading Commission (Gary Gensler); the under-secretary of state for economic, business, and agricultural affairs under President Bush (Reuben Jeffery); the past and current heads of the New York Stock Exchange (John Thain and Duncan Niederauer); the chief operating officer of the Securities and Exchange Commission’s enforcement division (Adam Storch). Moreover, Goldman’s new top lobbyist in Washington, Michael Paese, used to work for Barney Frank, the congressman who chairs the House Financial Services Committee. To put this in perspective, imagine that Alistair Darling, the chancellor, and his key advisers, Mervyn King, governor of the Bank of England, Xavier Rolet, the boss of the London Stock Exchange, and Hector Sants, head of the Financial Services Authority, all used to work at the same City firm before moving into government. Small wonder that another of Goldman’s nicknames is “Government Sachs”.

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