2. Thriving the New Way: With Little or No Reputation—The Goldman Sachs Story
“Our reputation is one of our most important assets.”
—Goldman Sachs Annual Report, 2007
This chapter describes three recent events involving the investment bank Goldman Sachs that serve as further proof that the traditional theory of reputation is dead. First, it notes the publication of an Op-Ed by Greg Smith, a Goldman employee who quit in order to publicize his insider’s perspective of Goldman’s blatant disrespect for its customers. Next, it presents Goldman’s involvement in a merger between El Paso, Inc., and Kinder Morgan, Inc. The case stemming out of this merger, In re El Paso Corporation, presents a sordid tale of Goldman’s obvious conflict of interest in the ...