The Secret to Goldman’s Success? By Barry Ritholtz

September 30th, 2009

The NY Post’s John Crudele looks at a simple question:

So, is this how Goldman Sachs does it?

“It,” of course, is making gobs of money even when nobody else on Wall Street can.

And those profits then go into outrageous bonuses to employees, which cause rancor on Capitol Hill and on Main Street.

You’ve heard the old saying, “it’s not what you know, but who you know.”

Goldman Sachs knows lots of important people. That fact is indisputable, mainly because former Goldman employees are scattered around the country, and the globe, in important, decision-making financial positions.

But I’d like to make an addendum to that old saying, which I’ll explore for you today: Who you know is only important if you can get them on the phone anytime you want. It’s also about the unparalleled access that Goldman Sachs had to Treasury Secretary Hank Paulson.”

I am not sure I buy into the full conspiracy theory, but it sure as hell seems like the CEO of Goldman Sach’s had pretty much unfettered access to the Treasury Secretary — a former CEO of Goldman Sach . . .

See also:
An Inside Look at How Goldman Sachs Lobbies the Senate
Matt Taibbi
True Slant, Sep. 29 2009 – 9:50 am

The secret to Goldman Sachs’ good fortune
John Crudele
NY Post, September 29, 2009

8 Responses to “The Secret to Goldman’s Success?”

1. Moss Says:
September 30th, 2009 at 7:00 am

I don’t think it was a secret plot, it was fully planned and coordinated.
That it can be done with impunity; that is the conspiracy.
2. flipspiceland Says:
September 30th, 2009 at 7:12 am

Nobody else can?

Then what’s Jamie Dimon doing on the cover of Newsweek, and has his own book out?

JPMorgan is twice the size of Goldman Sucks, Jamie is the “Last Man Standing”, and he sleeps with The Bamster

Someone overlooked the $1.3 Trillion under management at JPM.
3. VennData Says:
September 30th, 2009 at 7:31 am

… and the $3T at Blackrock.
4. Mark E Hoffer Says:
September 30th, 2009 at 8:05 am

con·spir·a·cy (kn-spîr-s)
n. pl. con·spir·a·cies
1. An agreement to perform together an illegal, wrongful, or subversive act.
2. A group of conspirators.
3. Law An agreement between two or more persons to commit a crime or accomplish a legal purpose through illegal action.
4. A joining or acting together, as if by sinister design: a conspiracy of wind and tide that devastated coastal areas.


[Middle English conspiracie, from Anglo-Norman, probably alteration of Old French conspiration, from Latin cnsprti, cnsprtin-, from cnsprtus, past participle of cnsprre, to conspire; see conspire.]

the word has been with us a long time, for a reason..

We should remember what We learned as children: “Stick and Stones may break our Bones, but…”
5. HEHEHE Says:
September 30th, 2009 at 8:05 am

Barry how can you be so naive? Look at the phone calls. Blankfein was at the AIG bailout meetings for crying out loud. I’ll go a step further and ask was there a quid pro quo between Paulson and Warren Buffet as Buffet gave his “endorsement” preferred stock deal with Goldman for American Express’ access to TARP funds by having them switched to a Bank Holding Company with no questions asked; Buffet was American Express’ largest shareholder.
6. jc Says:
September 30th, 2009 at 8:41 am

Chuzpah cubed. They ran a conspiracy right in front of us and Paulson got carte blanche for his illegal actions – on a never before imagined scale.
7. jc Says:
September 30th, 2009 at 8:47 am

There is a Sept 30 deadline on the Fed/Bloomberg appeal right? Talk about kicking the can down the road…
8. mknowles Says:
September 30th, 2009 at 9:26 am