Yesterday, Business Insider interviewed Henry Goldman III, the great grandson of Goldman Sachs founder Marcus Goldman, to get his take on Greg Smith’s incendiary resignation letter in the New York Times.His response: Smith’s assessment was accurate.
But Goldman had even more to say.
In a follow-up email, Goldman told Business Insider the two forces he believes have caused Wall Street to become unhinged: an obsession with share price, and a departure from normal securities.
“Stock ownership of investment banks as opposed to the old private partnership structure created a completely different system of incentives for firms such as Goldman, Sachs.
“In addition when bankers, including Goldman, Sachs, started peddling investment “Products” as opposed to equities and debt instruments it dramatically changed the system of compensation on the street. Whenever an account manager mentions “Products” my advice is to put your track shoes on, turn around and run as fast as you can for the exit.”