Goldman Sachs Shared Responsibility?
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Code : GOV0060
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Region : US |
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Background Considered as the "king of the hill" on Wall Street, Goldman Sachs had an extensive history of long-term success rooted in a distinct business culture with the accolades to prove it. Goldman Sachs was founded by Marcus Goldman (Marcus) in 1869 in New York, as a small commercial paper dealing firm and it pioneered the use of commercial paper. In the year 1882, the company was renamed as ‘Goldman Sachs and Co.’ after Marcus’s son-in-law, Samuel Sachs, became his partner. The company was well known among entrepreneurs as it helped them to fund their business through the issue of commercial papers. In 1896, the firm was invited to join the New York Stock Exchange.... Business Segments Goldman Sachs separated its business activities into three principal business segments: (i) Investment Banking, (ii) Trading and Principal Investments, and (iii) Asset Management and Securities Services . But later, from the fourth quarter of 2010, the firm began reporting its financial results under four business segments — (i) Investment Banking, (ii) Institutional Client Services, (iii) Investing and Lending and (iv) Investment Management... Goldman Trades Goldman's reputation grew in the 1970s, after it transformed itself into an investment bank under the guidance of Sidney Weinberg, Senior Partner in Goldman Sachs. The success of Goldman could be attributed to its 14 business principles (Refer to Exhibit 1 for Goldman's 14 Business Principles), which were codified in 1976 by Goldman Co. Chairman John C.Whitehead, to guide the firm . These business principles were taught to every new Goldman employee. The 14 business principles which were at the heart of the business, focused on the long-term prosperity of the firm’s clients, shareholders, employees, and the communities it served... |
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SEC Charges Against Goldman Saches The Permanent Subcommittee on the US Financial Crisis, in its 650-page report, alleged that Goldman had dumped a lot of toxic mortgaged-backed securities and mortgage-related securities into the market. It also reported that the synthetic instruments had helped to create a huge housing bubble. Carl Levin , in his report on Wall Street and the financial crisis ,, reported that Goldman had exploited its clients and its top executives had lied to Congress during their testimony in 2010 . The report alleged that Goldman had designed exotic and complex financial instruments - RMBS and CDOs - and sold them to clients without disclosing to them that it had taken short positions against them...
