Goldman’s shareholder meeting is happening right now and apparently one of the firm’s loud-mouthed shareholders is giving Lloyd Blankfein crap for hiring his two sons, Jonathan and Alex.
According to the Wall Street Journal, which is live-blogging it, Evelyn Davis is going off on Blankfein in front of everyone right now.
“Goldman Sachs has become a nest of nepotism,” she says, citing Alex’s working there currently.
“If Hank [Paulson] had been here this would never had happened.”
She’s being pretty presumptuous.
Jonathan Blankfein could well turn out to be a great hire for Goldman. He has insider, in-depth knowledge of how the firm works and for what it’s worth, he’s writing what sounds like a fascinating, and highly relevant senior thesis.
His topic: “The Origins of the Safety Fund System (1829-1837).”
The Safety Fund (1829-1866) required that each bank contribute to a common fund. Whenever a bank failed, this fund would be used to settle its debts.
Basically, he’s examining an early incarnation of the FDIC, and arguably getting at the roots of moral hazard.
We have no idea about Alex, but he’s been working at Goldman for a while and hasn’t been fired so, he can’t be terrible.
It’s also worth noting that Davies has no kids so maybe she just thinks the Blankfein’s are cute kids and her bitterness is just grandchild envy.
We know she thinks Lloyd is cute, at least in a smart way. She also told him, “You’re not as smart as you look,” today.
It sounds like Lloyd practically blushed.
“That’s the nicest thing you’ve ever said to me,” he told her.
(Fun detail: Goldman also has a shareholder who is a nun and was sitting behind Davis while this flirtation took place. She was not amused.)