Tuesday, June 15, 2010

Vast majority of Goldman clients staying with firm

As a followup to my previous post analyzing the fraud allegations against Goldman Sachs, I want to share a Times article that highlights a most curious phenomena: the vast majority of Goldman's clients are staying put.  Considering that these are precisely the people who are most at risk of being exploited and defrauded by the predatory lending practices of GS, its interesting that they aren't leaving.  Its almost as though the people who are most familiar with the financial services sector understand that Goldman really didn't do anything wrong, let alone criminal, and are in fact willing to put their money where their mouths are (quite literally!) and remain with the firm.  As General Electric chief executive Jeffrey Immelt said about Goldman, "We trust them... People need to tone down the rhetoric around financial services and stop the populism and be adults.”  I couldn't have said it better myself.

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