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Editor's Comments:
This Week's GS Buzz
Each week there seems to be a new development involving GS which quickly becomes "the talk of the inet". Goldman Sach's grease (not the country Greece) continues to boil and spill over.
This week's buzz is about GS not paying attention to their shareholders as evidenced by the many who have reported on this topic listed above.
It is becoming more and more evident that basic business principle's no longer apply in our so called Capitalist society. Basic accounting principle's have been thrown out the window in favor of practices such as off balance sheet accounting, low or no capitol requirements for certain types of banking functions, the sky's the limit for interest charges to consumers and an environment void of any moral business behavior. Now, a new form of corporate arrogance has come into existence. Shunning even denying your "owners" - the shareholders - thier rightful voice.
Goldman Sachs is a publicly traded company. That means that it has sold pieces of itself to investors - stockholders - in the form of shares - hence the name shareholders. Either name you give them, the bottom line is that those owning that piece of the company are the owners of that compnay.
In my many years in business and my basic business training in school (I call it basic because the real education is on the street) I was always under the impression that a public company was guided by the shareholders who in turn appointed a Board of Directors to oversee their company. The Board then hired corporate officers - President, VP, Secretary and Treasurer - who then were responsible for the daily operations of that company.
The hierarchy was the officers reported to and were responsible to the Board and the Board reported to and was responsible to the shareholders. The shareholders hold meetings - mostly annual - to vote on various matters concerning the business of their company. In other words, the "big boss" is the sum total of all the shareholders.
Corporate governance is a democratic system. The owners -shareholders - vote and the Board of Directors implement the results of that vote and then pass down to the officers the orders to operate their boss's company in the manner in which they voted.
One such matter is compensation and bonuses. It is up to the owners to determine those levels. Yes, the Board can act on their own so long as there are no objection from their bosses.
Somehow at GS, things don't work that way. Their overall arrogance aimed at the entire population of this country and others now spills over to the people they work for. They must believe that they are not only doing God's work but that they are God. the Almighty and Omnipotent.
From AP (New York) as posted by Google:
NEW YORK — Goldman Sachs Group Inc. said Monday it has rejected demands by shareholders to investigate the Wall Street bank's compensation practices.
Shareholder lawsuits filed recently in New York and Delaware charge that Goldman's compensation levels in 2009 were too high, Goldman said in a Securities and Exchange Commission filing. The lawsuits seek to recover some of the pay and force the bank to adopt pay reforms. Goldman said shareholders have made similar demands in letters to its board.
Lawmakers and shareholders sharply criticized Wall Street pay after the biggest banks lost billions of dollars on bad mortgage bets, helped cause the recession and then had to be bailed out by the government.
In its filing, Goldman said government agencies and regulators have sought information about its pay practices. The bank said it was cooperating with those inquires but won't grant shareholders' demand for an internal probe or wider pay reforms.
From New York Times DealBook: By Michelle Leder
Goldman Discloses a New Risk: Bad Publicity
So perhaps it’s not so surprising that in the 10-K financial statement that Goldman filed on Monday, it included a new risk factor related to the problems of negative publicity.
Go to S.E.C. Filing from Goldman Sachs »
A good new name for them should be - Goldman Arrogant Sachs - (the acronym) GAS, as toxic gas is what they spew out. I would imagine all this gas from 'GAS' must be having some impact on global warming. Al Gore should probably be consulted on this to add this GAS to the other gasses of probable cause for climate change. One thing is for sure, GS (GAS) is certainly changing the climate of business and banking. A real climate change we are all feeling the affects of.
Editor's note: I don't subscribe to the theory of Global Warming. But I do subscribe to the belief that we should clut down on pollutants and find clean, reliable energy sources. The technology is there just not the will by the ruling corporate class.
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