Goldman's Horrible Week: A Bungled Deal, Angry Clients, Ugly Earnings, And A Sliding Stock

Lloyd Blankfein

Photo: AP

This hasn’t been the best few days for Goldman Sachs.First it released a much-anticipated report about reforming its culture that was widely panned for being high on lofty rhetoric and high on nonsense.

Then it bungled the Facebook deal. Well, we don’t know, exactly, what went wrong, but Facebook hired the bank to execute a certain thing, and whether it was due to overly-stringent regulator or its own hubris, it was not able to get that deal down.

In addition to (possibly) fraying a relationship with a key banking client, it angered its clients in the process by telling them they could buy Facebook shares, and then telling them hey couldn’t. Some of them, apparently, had already liquidated other holdings.

And now it’s earnings came in mediocre. Fixed income trading collapsed, and the company missed its revenue targets, sending the stock lower.

If you needed any evidence that the formerly feared bank is losing its luster, you got plenty this week.

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