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Goldman Sachs's (GS) normally reclusive CEO and noted theologian Lloyd Blankfein has been conducting an unprecedented number of interviewers of late to try to bolster the company's image.Maybe they'd be better off if he crawled back into his shell.
In an interview with London's Sunday Times, Mr. Blankfein explained that Goldman Sachs is "doing God's work."
I never thought of God as a mortgage backed securities trader necessarily, but that's OK. Blankfein added that "We help companies to grow by helping them to raise capital. Companies that grow create wealth. This, in turn, allows people to have jobs that create more growth and more wealth. We have a social purpose."
What's interesting is that Mr. Blankfein is not the first CEO to stare down allegations of profit-motivated manipulation of markets by invoking God. Back in 2001 -- before his life got really ugly -- Enron's then-CEO Jeff Skilling was explaining to a PBS reporter that Enron was not responsible for the California energy crisis and was actually helping to make markets more efficient and consumer-friendly. His explanation? "We are the good guys. We are on the side of angels."
Nevertheless, the argument Mr. Blankfein is making is not entirely unreasonable. There are very few people who would argue that banks don't serve some kind of social purpose.
But that still leaves one question: Since when do servants of God need TARP money?
What's interesting is that Mr. Blankfein is not the first CEO to stare down allegations of profit-motivated manipulation of markets by invoking God. Back in 2001 -- before his life got really ugly -- Enron's then-CEO Jeff Skilling was explaining to a PBS reporter that Enron was not responsible for the California energy crisis and was actually helping to make markets more efficient and consumer-friendly. His explanation? "We are the good guys. We are on the side of angels."
Nevertheless, the argument Mr. Blankfein is making is not entirely unreasonable. There are very few people who would argue that banks don't serve some kind of social purpose.
But that still leaves one question: Since when do servants of God need TARP money?
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Reader Comments (Page 1 of 1)
11-09-2009 @ 12:24PM
Beltway Greg said...
For your answer we must appeal to John Milton author of "Paradise Lost." A close contextual reading reveals that sin and salvation are often closely related and many times the lines are blurred between good and evil. God's come in all shapes and sizes and force their devotees to do all manner of acts which are incomprehensible to mere mortals. Based on their trading success Lloyd and the good folks at
Goldman have divine intervention of some type. Be it bad be it good be it god. Shut your mouth and go long.
11-09-2009 @ 12:43PM
dunninggroup said...
Seems to me that Goldman didn't need TARP money and gave it back.
11-09-2009 @ 1:06PM
Nick Gidwani said...
I think the larger point becomes: how many times larger should a derivative market be than the underlying before it just becomes a casino?
I firmly agree that derivatives are extremely useful for hedging. If you own a steel mill, sure you should sell for future delivery, or perhaps buy oil futures to reduce your cost variance. However, does it make sense that the corporate CDS market is 10-100x larger than the actual underlying corporate debt market? That would mean that MANY, not just a few, market participants would see huge incentives in a company going bankrupt -- and that, is not on the side of God or the Angels. That is perverse, and the clearest example that things have gone off-track.
The problem is simple: the casino is now gone way beyond useful economic purposes. Now, if then would scale down to a size that was more appropriate for actually helping economic activity - then no complaints at all. Hopefully the fed will force the marketplace to scale down to a size that is economically helpful, as oppose to a sort of casino-tax on the entire country.
11-10-2009 @ 1:06AM
Louie said...
Mr CEO of Goldman Sachs ...cant wait till you meet G-d !
You have taken His Name Ha Shem in vain !
He said that thieves , robbers , murders , people with uneven scales are not going to make it to
The Kingdom of Heaven .
Enjoy your job here because you will be with your new boss Ha Satan because you & your company are the above .
11-10-2009 @ 2:03PM
stephen said...
Sure thing Lloyd you made it by the grace of god. And you didn't need the US Taxpayers to bail out AIG so your stinking company could collect the close to $13 Billion that otherwise would have likely caused your company to go into the toilet? What gall!
And you, a CEO of a compnay who sold those next to worthless mortgage securities and then shorted them? How many pension plans did your share of the toxic assets contaminate nationwide? If I were you I'd shut my mouth and pray that the taxpayers don't go out on a lynching streak.
You are a great example why each and every state needs to revoke Corporate Personhood and put each and every limited liability corporation on a short leash.