[ by Larry Goldfarb ]

Greg Smith’s tale in the book published today, “Why I left Goldman Sachs” appears to depict a firm that is not as client focused as it professes to be.  Calling client Muppets or selling complicated products to unsuspecting customers is a way of life on Wall Street so why should Goldman be different. 

Brokers are not fiduciaries.  With the rules that were derived from an egregious period in the 30' when unsuspecting clients got robbed, brokers / bankers try to create a scenario where both parties win.  Happy profitable clients make for more business.  At the same time,  brokers / bankers try to protect themselves.  Goldman is just one example of how finance firms assert that type of protection. 

Given this model, would it work if the finance firm, like Goldman, would say in an advertisement, “use our services, but don’t forget, we are out to win whether you win or not” --  of course not.  So read and enjoy Greg Smith’s book.  But don’t be deluded that Goldman is any type of deviant enterprise.  It is not different than any other profitable business.  That’s why you should count your money when you leave the bank, or review the check before you pay the bill.