The financial world is in a tizzy about an editorial published yesterday in the NY Times written by an executive of Goldman Sachs (who simultaneously tendered his resignation). It doesn’t paint a very pretty picture of the company.
Ironically, the reaction from both supporters and detractors of Goldman Sachs is pretty much the same — “are you surprised that Goldman Sachs gleefully screws over their clients to further their goal of making as much money as possible, by any means?” Detractors because none of this is news — a Senate investigation and recent convictions for fraud said the same thing. Supporters of Goldman Sachs because they think that screwing over clients and rampant greed are normal and acceptable, so what’s the fuss all about?
Meanwhile, the value of Goldman’s stock dropped by over $2 billion on the news.
Wouldn’t it be really ironic if the author of the editorial shorted Goldman’s stock just before his piece was published, thus making lots of money at Goldman’s expense the same way that Goldman makes money at their clients’ expense?