Why I am Leaving Goldman Sachs. The inimitable Goldman Sachs style - unique, brash, confident, decisive, and sometimes flashy - was on full display in Wednesday's New York Times Opinion Page.  Greg Smith, a Goldman executive announced his resignation to the world, blaming top management - including CEO Lloyd Blankfein and President Gary Cohn - for the erosion of the firm culture. Mr. Smith, who headed Goldman’s U.S. equity derivatives business in Europe, the Middle East, and Africa, said clients’ interests were sidelined in how the firm operated and thought about making money. I truly believe that this decline in the firm’s moral fiber represents the single most serious threat to its long-run survival.  It astounds me how little senior management gets a basic truth: If clients don’t trust you they will eventually stop doing business with you.  It doesn’t matter how smart you are. Without clients you will not make money.  In fact, you will not exist.  Weed out the morally bankrupt people, no matter how much money they make for the firm.  And get the culture right again, so people want to work here for the right reasons. Goldman Sachs Responds. Goldman took issue with the opinion piece, defending the investment bank’s practices and its treatment of clients.  A spokesperson had this to say:

"We disagree with the views expressed, which we don’t think reflect the way we run our business.  In our view, we will only be successful if our clients are successful. This fundamental truth lies at the heart of how we conduct ourselves."

The reaction worldwide has been dramatic - on the Web and Twitter, with some calling it a “must read” and others a “public relations disaster.” Click to continue reading:  [Live Blog on DealBook, 3/14/12] and  [Mr. Smith's Letter of Resignation].