On March 14, 2012, more than three million people read Greg Smith's bombshell op-ed in the New York Times titled Why I Am Leaving Goldman Sachs. The column immediately went viral, became a worldwide trending topic on Twitter, and drew passionate responses from former Fed chairman Paul Volcker, legendary General Electric CEO Jack Welch, and New York City mayor Mike Bloomberg. Mostly, though, it hit a nerve among the general public who question the role of Wall Street in society - and the callous "take-the-money-and-run" mentality that brought the world economy to its knees a few short years ago. Smith now picks up where his op-ed left off.
His story begins in the summer of 2000, when an idealistic 21-year-old arrives as an intern at Goldman Sachs and learns about the firm's Business Principle Number One: Our clients' interests always come first. This remains Smith's mantra as he rises from intern to analyst to sales trader, with clients controlling assets of more than a trillion dollars.
From the shenanigans of his summer internship during the technology bubble to Las Vegas hot tubs and the excesses of the real estate boom; from the career lifeline he received from an NFL Hall of Famer during the bear market to the day Warren Buffett came to save Goldman Sachs from extinction - Smith will take the reader on his personal journey through the firm, and bring us inside the world's most powerful bank.
Smith describes in page-turning detail how the most storied investment bank on Wall Street went from taking iconic companies like Ford, Sears, and Microsoft public to becoming a "vampire squid" that referred to its clients as "muppets" and paid the government a record half-billion dollars to settle SEC charges. He shows the evolution of Wall Street into an industry riddled with conflicts of interest and a profit-at-all-costs mentality: a perfectly rigged game at the expense of the economy and the society at large.
After conversations with nine Goldman Sachs partners over a twelve-month period proved fruitless, Smith came to believe that the only way the system would ever change was for an insider to finally speak out publicly. He walked away from his career and took matters into his own hands. This is his story.
©2012 Greg Smith (P)2012 Hachette Audio
Although often cited in the press as an “indictment” of Goldman Sachs, this book is not a mere diatribe against Goldman. It is just as much Greg Smith’s story of what he treasured about Goldman. He mentions many people he met at Goldman whom he greatly admired. He also notes with pride that Goldman was savvy enough to withstand the 2008 financial meltdown by being one of the few Wall Street firms with the good judgment to turn away from the alluring fool’s gold of subprime mortgage securities. He provides a very well written inside account of his 12-year career at Goldman, rising from intern through the ranks of the equities group as a well regarded trader and salesman.
What Greg Smith portrays is a firm that shifted priorities during his tenure from a place that went the extra mile for its clients (“advising my clients to do what I believe is right for them, even if it means less money for the firm,” as he put it in his NY Times op ed piece) to one that focused primarily on an employee’s “GC’s”—his or her “gross credits” based on net profits realized by the firm on its trades with those clients. The conflict of interest in such cases is obvious. He cites examples from his final year in the GS London office in which the focus on “profits” led certain Goldman employees to take advantage of their clients when it was clear the client had made a mistake or did not understand the essentials of a complex securities trade. To be fair, he cites only a few such examples and emphasizes in an “afterword” that no one should doubt there are thousands of honest and hard-working people who populate the Wall Street firms.
To some degree, what I believe Greg Smith experienced at Goldman reflected a trend we have seen over the past 20 years in other institutions once highly regarded for their professional standards but who have become much more “bottom line” oriented as they have adapted to more competitive business conditions and focused their resources on the most productive sectors of their business. Consider, as an extreme example, Arthur Andersen, once the gold standard of accounting firms, since disgraced in the Enron scandal. I personally witnessed this trend myself over 20-some years practicing in a so-called “Big Law” firm.
I think Greg Smith is absolutely right that for the sake of a professional firm’s culture, reputation and long-time survival, it has to get the balance between professional standards and business priorities right. In his opinion, GS had fallen below an acceptable professional standard by the time he left the firm. Others within Goldman will no doubt disagree with him in good faith. In any case, the book provides a couple of apt warnings. First, for those considering a career in a top Wall Street firm, be prepared for constant pressure to produce profits in a way that may run counter to the best interests of your clients, even if perfectly legal. You should decide whether you are up to handling that pressure and maintaining your personal ethical standards. Second, if you are doing business with Goldman Sachs (or any Wall Street firm), be sure you know well the person you are dealing with before you place your trust in him or her. You cannot simply assume they will be looking out for your best interests.
Judy Murray Jack
Yes, because the author read it and his emotion came through.
The fascinating inside look at modern Wall Street.
His mixed emotions at leaving work he had loved. Also, his experience of 9/11.
I think Mr. Smith has achieved his purpose of exposing how greed has overtaken Wall Street traders. It will be interesting to see if there are meaningful management and regulatory changes as a result.
avoiding road rage one book at a time...
I'll start with I love an accent and had zero trouble listening to this book. I'm always happier when a writer can narrate their own book, because it brings authenticity. I also appreciate when a writer is in over their head and calls in a pro. Not the case, Greg Smith can read his own book.
I really enjoyed this book initially. South African boy does good, wins scholarship to Stanford, procures Wall Street Internship and amazing career ensues. Greg gave enough insight and definition to his (complicated) work, so a novice could follow along and not get bored or overwhelmed with jargon. I felt like I learned things and even found myself making the hand gestures to buy and sell, like I was standing on 'the floor' (people driving by just thought I was nuts).
My problem is Greg comes across as a lily-white, do-gooder surrounded by blood-sucking heathens. It just doesn't feel genuine when you elevate yourself at the expense of others. He was the only good guy in a sea of scum... right (said sarcastically). He writes openly about his peer's weaknesses, his superior's faults and personality quirks even about hanging out with strippers in a hot tub in Vegas with his GS bretheren (whatever happened to what happens in Vegas, stays in Vegas?). He burnt people to write this book all the while he is portraying himself as saint. He totally covered his own a## and made a premeditated exit from GS, while simultaneously ripping the rug out from the company that took VERY good care of him for 10 years. It feels kind of gross and disingenuous. I ended up not liking this guy.
Listen, I LOVE a juicy tell-all and I still respect people I've admired if I learned they've done something outside of my moral boundaries. I just think this guy saw an opportunity... that is it precisely... Greg Smith comes of as an opportunistic jerk and by the end of this book I stopped caring about what he had to say.
I live in Thailand, and love to listen to audible.
I enjoyed this book and it held my interest throughout. It's a real inside look at finance. I agree with Greg. Whatever happened to corporate responsibility? It seems like Goldman Sachs thinks it doesn't apply to them. This book tells an interesting story from college through vice presidency for Greg! Nice work.
Best thing about this book is that it was written and narrated by the person that lived through a tumultuous period on Wall Street. Sounded authentic to me.
Working mom (HRMgr/healthcare) in western Michigan. INTJ. Red Vines. Disneyfreak.
Greg Smith describes how an organization's evolving values make their way into everyday behavior which over time become personally intolerable (both the behaviors and the values).
appreciated the level of detail in his descriptions of the characters and Wall Street life. It does not read like a rant. It reads like a sad break up story.
He seems hard working and smart; maybe not the warmest guy on the planet...I enjoyed his intelligent thinking and phrasing.
I learned a lot about Wall Street, which was one of my objectives. I am not delusional that he is entirely blameless, at the end of the day, but it is also obvious that there is plenty of blame to go around.
worth a read
they author/reader's accent is pretty cool
not done with it yet
i would not mind re-listening to this again.
Not the BEST account of the financial crisis, however a very interesting take on the shift in culture that have taken place on Wall Street.
The rare look inside one of the most important financial institutions in the world.
Not really. However, the key changes inside GS is nicely accounted for. However, it may be a bit narrow, due to the authors limited access to guys at the very top. It's more descriptive than offering actual explanations.
Worth using a credit on if interested in the inner workings of one of the most opaque yet influential institutions in the world. Not groundbreaking and the author seem to think very highly of Himself in se passages.
I love bio books about wall street, this one was just especially boring without any real substance or stories that kept me interested. In fact I quit after just 2 hours of listening, the first time I have done that in 2 years. His voice is mono chromatic which I could have lived with had the book had anything of value.
There are far better options about the subject with far more interesting authors that I would choose over this title, but that's just my opinion
Audible has allowed me to enjoy books again.
Definitely would reread some parts of the book. Especially the details explaining derivatives/SWOPS and how GS was involved in 2007-2008 Financial Fall.
Lords of Finance-Great book on the 4 major world powers in the early 1900's on they dealt with Gold Standard.
Explanation of GS involvement with the whole 2007-2008 Financial Fall
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