Barry Ritholtz, market commentator and CEO/Director for Equity Research for Fusion IQ was just on Bloomberg TV talking about the man of the hour, Greg Smith.
He said that a lof of what Smith talked about in his explosive Goldman Sachs resignation op-ed was common knowledge on the Street â€” but so what?
“Where are Goldman’s clients going to go, to to the choir boys at Morgan Stanley of the philanthropic organisation known as Deutsche Bank? Every derivatives desk is just like this. It’s about profits first. They sell complex, opaque products and that rarely works in the client’s favour… Once you go public, there’s 1 rule, hit your quarterly numbers… or the street’s going to punish us.”
“Genteel concepts” like firm culture, Ritholtz added, get lost in the muck. But that isn’t something Smith has to worry about anymore. His piece gave Ritholtz the impression that he wasn’t just leaving Goldman, but the entire financial industry as well.
Check out he video below: