Report: Goldman employees told to avoid flashing wealth
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There go the hopes and dreams of struggling retailers across New York City and the tri-state area.
Goldman Sachs Group, the target of so much public ire over its resurging profitability after the financial crisis, reportedly is telling employees to tone down their spending.
From the New York Post:
‘Goldman Sachs CEO Lloyd Blankfein has warned his employees to avoid making big-ticket, high-profile purchases as the gold-plated Wall Street firm hunkers down amid a firestorm of public and political anger over outsize bonus payments. ‘A source within the bank said Blankfein first began calling for an end to the conspicuous consumption late last year, but has stepped up his campaign in recent weeks as the White House has sought to rein in compensation and as the firm has gotten dinged by a pair of high-profile magazine articles.’
A scathing Rolling Stone profile of Goldman in June referred to the banking giant as ‘a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.’
In July, Goldman reported record second-quarter earnings of $3.4 billion -- just seven months after the firm and hundreds of other banks got capital infusions from the government to save the tottering financial system.
Although Goldman already has repaid Uncle Sam, the expectation of huge 2009 bonuses for Goldman employees (given the latest earnings report) has galvanized those who believe that bankers’ compensation remains outrageous relative to what they add to society.
Goldman also is one of the firms at the center of the controversy over so-called high-frequency trading -- computerized stock trading that critics say allows big players like Goldman to game the market for their own advantage. Goldman recently sent a letter to clients addressing some of those accusations.
As for the New York Post story, life apparently imitates art: A New Yorker magazine spoof last month had Blankfein, in a memo, calling on employees to avoid boastful displays in the wake of the latest earnings report.
Some of the ‘memo’s’ advice to Goldman workers:
--- ‘Please limit high-fives and chest bumps to a dozen a day. --- ‘Don’t wear your crowns, except around the office. --- ‘For now, let’s take down the giant scoreboard that reads ‘Main Street: zero. Wall Street: a billion gazillion bajillion.’ ‘
-- Tom Petruno