The ‘long-term greedy’ canard: James Saft

March 15, 2012

By James Saft

(Reuters) – Nostalgia for the era when bankers were “long-term greedy” is a red herring, misdirecting our attention to how banks govern themselves when the true issue is how they are governed.

Greg Smith, until Wednesday a Goldman Sachs executive director in its derivatives business, dropped a bomb on his way out the door, publishing an op-ed piece in the New York Times in which he decried, as he describes it, the erosion of integrity at the firm and how the interests of clients take a back seat to short-term profits.

“It astounds me how little senior management gets a basic truth: If clients don’t trust you they will eventually stop doing business with you,” Smith writes. James Dalgleish)

(At the time of publication, Reuters columnist James Saft did not own any direct investments in securities mentioned in this article. He may be an owner indirectly as an investor in a fund. For previous columns by James Saft, click on)

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