Commentaries

Is Goldman Sachs evil?

Is Goldman Sachs really a “vampire squid wrapped around the face of humanity”?

That’s the view of journalist Matt Taibbi in a long article in Rolling Stone magazine. Taibbi blames the firm for almost single-handedly orchestrating every investment calamity since the Great Depression. And judging by much of the reaction in the blogosphere, Taibbi’s view has become the accepted meme when talking about Goldman.

Yet that simple storyline, as compelling as it may be, is far from the truth.

The reality is Goldman is no more of a sinner than any other Wall Street bank. Is Goldman really any more responsible for the inflating and the bursting of the housing bubble than

But what does separate Goldman from the pack is that it consistently plays the trading game with a far more ruthless attitude.

Goldman’s rough-and-tumble style is on display in the case of a former employee accused of stealing some of its secret proprietary trading codes. According to the criminal complaint, Goldman learned about the alleged skulduggery of its former employee, Sergey Aleynikov, sometime in mid-June. But the firm waited until July 1, right before the start of the Fourth of July holiday, to notify federal authorities of the theft.

Aleynikov’s late evening arrest on July 3 forced an unusual holiday court appearance the next day in federal court in Manhattan. The terms of the bail were rather steep. And, of course, the banks were closed for the next two days — all but insuring Aleynikov would spend a few more nights in jail.