Greg Smith must have been fired or something. because this ex-Goldman Sachs executive was pissed at the firm. He wrote an article for the New york Times acussing Goldman Sachs of ripping off their clients.
"Today, many of these leaders display a Goldman Sachs culture quotient of exactly zero percent. I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them...It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God’s work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact."
Well, Goldman has been at this for sometime. Remember when Goldman was busted for creating junk derivatives, selling them to clients and then betting against the crap that they sold to their own clients? I most certainly do.
Greg Smith Rips Goldman Sachs
Well, after Smith spilled the beans on Goldman Sachs, a current JP morgan employee sounded the alarm about his company.
"I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly."
Here's he most damning part.
"Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days."
So what happens when Greece defaults and Spain and Italy are exposed? Wait, don't Greece have a bond payment on March 20th?
JP Morgan Letter