Goldman Sachs VP explains why he quit

October 21, 2012 4:30 PM

Greg Smith, who publicly resigned in scathing op-ed, says investment bank's unethical culture threatens firm's future. Anderson Cooper reports.

Web Extras

Scroll Left Scroll Right


by globalbanker October 28, 2012 7:18 PM EDT: shame on cbs for showing this money grabber's story. He wasnt making enough money at gold-lined bankers sachs so selling his story to the media.. absolute disgrace. Now understand who the occupy wall street are protesting against.; Reply to this comment


by rock0811 October 22, 2012 8:30 PM EDT: Companies like Goldman Sachs essentially have a license to steal. Their tentacles in the government run long and deep. The American public is bombarded with so much information these days that the subprime debacle is all but forgotten. Wall St survived the storm and many people crept into the abyss with pockets full of money they stole from honest, decent working people. And Wall St's biggest partner...our own government.; Reply to this comment


by henobi October 22, 2012 1:43 PM EDT: One major problem is that stocks are promoted as "owning a part of a company." I have owned several stocks that tanked, and never shared in the liquidation proceeds. Obama wiped out my GM, and never let me participate in the recovery, nor explained why. Stocks are like an unsecured loan, and should be presented as such.
The Wall Street Journal had an article about how regulations are so complex that many regulators don't understand them. http://online.wsj.com/article/SB10000872396390444273704577637792879194380.html
Perhaps the best way is to encourage whistleblowing, where employees can be rewarded for reporting fraudulent actvity. There should be a clawback provision, where bad executives have to return all their ill-gotten gains.; Reply to this comment


by Ex-Banker1 October 22, 2012 1:33 PM EDT: I don't know where the UCSD professor got his Wall Street reputational experience, but as a senior investment banker at a competing firm, a hedge fund portfolio manager, and an investment banking client, I can tell you that NONE of my colleagues has ever trusted Goldman Sachs. They are notorious for putting the firm before the client in any and all situations. They are not "one of many" on Wall Street who do this - they stand alone. Anybody who knows the industry at all knows this. That professor clearly doesn't know the industry - or perhaps he's just trying to get a job with GS.; Reply to this comment


by Ceres6 October 22, 2012 1:13 PM EDT: In the last year of the Bush administration, it is estimated that 2.3 trillion dollars was stolen by Wall Street crooks? How many of those crooks has the Obama Admiinistration sent to jail? ZERO! Therefore, in this matter, Obama, Romney or nothing they are all the same thing.; Reply to this comment


by WestTexasBliss October 22, 2012 9:42 AM EDT: Thank you, Greg Smith for speaking out. You are brave to take a stand for your clients and for your own integrity. I applaud you for walking away and for speaking out. You need to hook up with people like Harry Markopolos. You might consider working to advance real regulation of the industry.; Reply to this comment


by spencermorfordschaffer October 22, 2012 7:46 AM EDT: You state that Goldman Sachs is the MOST politcally connected bank in existence. You state it is the biggest bank. Why wouldn't they reply with a comment that Smith was angry he did not get promoted. To hood wink clients with covert fees is a lot like deceptive sales practices by car dealerships.; Reply to this comment


by bsc36 October 22, 2012 3:47 AM EDT: I applaud Greg Smith for speaking out and revealing the secretive, ugly world of the great Vampire Squid better known as Goldman Sachs. I feel sorry for the "Muppets" because those are real people who's pensions and 401(k)'s are being robbed!! One part of the interview that blew my mind was when Greg shared a comment made by one of his largest customers..."We don't trust you but we have to continue to do business with you...". I certainly hope the fiduciary of my Muppet 401(k) doesn't have such a narrow, self-defeating attitude!; Reply to this comment


by siam46 October 22, 2012 2:48 AM EDT: Great Story! I would hope that Mr. Greg Smith would create a business (a training program) for training Federal Government agencies all over the world. Or better yet, go to work for us- the US government, the Tax payer. Please become an auditor and or a regulator- to monitor these financial firms; and do it in a manner that is "win-win" for the Tax payer and the financial concern.
Maybe you can monitor these financial firms from a private sector enviornment. I do not know, but Mr. Smith you have a lot to offer the world. 60 minutes, again, thank you for a great story and please thank Mr. Greg Smith.; Reply to this comment

Recent Segments

60 Minutes Overtime is a weekly web show that begins where the weekly television broadcast ends