Greg Smith Takes the Bull by the Horns: How Goldman Sachs Lost Its Secret Sauce
A fed up Executive Director has quit Goldman Sachs, stating that the company has lost sight of its culture and no longer cares about its clients. However, instead of just walking away from the problem, the disgruntled employee has shared his resignation with the world, along with some trade secrets.
With unemployment rates still relatively high, many are looking for jobs. With that said, hungry job searchers will be delighted with Greg Smith who quit Goldman Sachs and not only freed up a position, but also offered tips on how to succeed at the top notch firm.
So what are three quickest ways to become a leader at Goldman Sachs? Execute axes, hunt elephants, and throw out the bricks, says Smith. The exec explained that in lay men's terms, that means to persuade "your clients to invest in the stocks or other products that the bank is trying to get rid of because of low potential profits," push clients to trade what is most profitable to the company, and "trade any illiquid, opaque product with a three-letter acronym."
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Of course, that is also the reason why Smith quit.
"Call me old-fashioned," Smith said. "But I don't like selling my clients a product that is wrong for them."
Starting with the company as a summer intern, he revealed that Goldman Sachs was once a company he respected:"It might sound surprising to a skeptical public, but culture was always a vital part of Goldman Sachs's success. It revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients."
Now, though, he has relayed that the culture he aspired to serve has become so corrupt that it is not one he is willing to pass on to new incoming employees.
"I knew it was time to leave when I realized I could no longer look students in the eye and tell them what a great place this was to work," revealed the former executive.
Smith has suggested that the company's loss of morals and values will lead to an inevitable demise.
"I truly believe that this decline in the firm's moral fiber represents the single most serious threat to its long-run survival," he said. "The culture was the secret sauce that made this place great and allowed us to earn our clients' trust for 143 years. It wasn't just about making money; this alone will not sustain a firm for so long."
Smith's letter, which was published as an Op-ed piece The New York Times, is likely to make yet another strike at the bull that was once the heart of Wall Street.
