The market value of Goldman Sachs’ stock fell by $2.15 billion yesterday after one of the company’s top executives resigned via an op-ed article he wrote in The New York Times, Bloomberg BusinessWeek reports.
Says the article, "Goldman Sachs Group Inc. (GS) saw $2.15 billion of its market value wiped out after an employee assailed Chief Executive Officer Lloyd C. Blankfein’s management and the firm’s treatment of clients, sparking debate across Wall Street.
"The shares dropped 3.4 percent in New York trading yesterday, the third-biggest decline in the 81-company Standard & Poor’s 500 Financials Index, after London-based Greg Smith made the accusations in a New York Times op-ed piece."
The article continues, "Smith, who also wrote that he was quitting after 12 years at the company, blamed Blankfein, 57, and President Gary D. Cohn, 51, for a ‘decline in the firm’s moral fiber.’ They responded in a memo to current and former employees, saying that Smith’s assertions don’t reflect the firm’s values, culture or ‘how the vast majority of people at Goldman Sachs think about the firm and the work it does on behalf of our clients.’”
The op-ed then became the subject of hundreds of articles. One, by columnist David Weidner in the Wall Street Journal, said, "For all of Mr. Smith’s self-righteous bluster, he is late to the game. Worse, his assertions that Goldman has traded loyalty and respect seem almost too neat. Goldman, Google Inc. or any other business might strive to ‘not be evil,’ but such idealism is only a priority after the profits have been booked. This is not to say the cultural change at Goldman to which Mr. Smith refers hasn’t happened. For someone who worked in even a middling position at the firm for the last 12 years, though, Mr. Smith seems a little naive to realize in 2012 that gambling was going on."