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Goldman's Greg Smith: Trader, Whistle-Blower, And Soon ...

March 27, 2012
[ by Melanie Gretchen ] Apparently, Greg Smith's 15 minutes in the public spotlight could not quench his unsatiable thirst for attention.  And so, he is being courted by numerous publishers who would like him to write for them a tell-all tale of his career at Goldman Sachs.  The former executive is reportedly making the rounds of New York publishers, including imprints at several prominent houses. There's talk that he could earn an up front fee of $1,000,000 for his first book - published or not. A Second Wind. Mr. Smith, who ran Goldman's U.S. equity derivatives business in Europe, the Middle East, and Africa, describes his upcoming book as a coming-of-age story, the tale of someone who came into the business with good intentions and sky-high ideals that ultimately were pierced by his employer's obsessive focus on making money. The public allure of such a book is the opportunity for a reader to gain a glimpse into the inner workings of Goldman Sachs, as well as the perceived change in its firm-wide culture.  This would be quite a catch, since little is known about what goes on behind the closed doors at Goldman Sachs, which traditionally has been a very private, close-to-the-vest firm. Mr. Smith, a native of South Africa who lived in London, reportedly became increasingly disillusioned by his experiences and became eager to leave the firm after nearly 12 years.  Following the publication of his resignation in the NYTimes Op-Ed Section, Goldman countered Mr. Smith’s assertions by saying they did not reflect the firm’s values or culture. Reception. Nevertheless, publishers are comparing Greg Smith future book to "House of Cards: A Tale of Hubris and Wretched Excess on Wall Street," written in 2009 by William D. Cohan who retold the fall of Bear Stearns.  They're also comparing Smith's book to the classic Michael Lewis' "Liar’s Poker: Rising Through the Wreckage on Wall Street." Publishers who have met with Mr. Smith describe him as mild-mannered, polite, spare with details but sincere.  "He appeared to be a guy with integrity," one publishing executive said. On the flip side, are concerns that the book may include potential legal issues that would pit ex-employee Smith against his large, deep-pocketed former employer.  One publisher questioned whether Mr. Smith could write his derivatives work accessible, while another was skeptical that a midlevel employee's experience would produce a gripping glimpse inside a Wall Street power. Looming Deadline. They say that "timing is everything," and that would probably apply to Mr. Smith prospective book.  If the book were to be released late in 2012 or even in 2013, there's a good chance that the momentum of Greg Smith's Op-Ed Resignation Letter might be lost.  In such a case, "the book will likely feel dated," according to one executive, who added, "It’s a story that had its moment." At least Greg Smith appears to be progressing steadily.  He's working with an agent, Paul Fedorko, who works for talent agency N. S. Bienstock. For further details, go to [NYTimes, 3/23/12].