Take the Dragon Systems deal that Goldman Sachs was asked to underwrite. You will see how Goldman treats its smaller clients: it gives advice for millions of dollars but does not always deliver, i.e., it proved to be incompetent and misleading. Goldman has no mystique and only leaves a trail of broken dreams behind it. Conflicts of interest mean nothing to it.
Goldman Sachs is an appalling bank.
Goldman Sachs and the $580 Million Black Hole
By Loren Feldman - The New York Times
THE business deal from hell began to crumble even before the Champagne corks were popped.
The deal, the $580 million sale of a highflying technology company, Dragon Systems, had just been approved by its board and congratulations were being exchanged. But even then, at that moment of celebration, there was a sense that something was amiss.
The chief executive of Dragon had received a congratulatory bottle from the investment bankers representing the acquiring company, a Belgian competitor called Lernout & Hauspie. But he hadn’t heard from Dragon’s own bankers at Goldman Sachs.“I still have not received anything from Goldman,” the executive wrote in an e-mail to the other bank. “Do they know something I should know?”More than a decade later, that question is still reverberating in a brutal legal battle between Goldman and the founders of Dragon Systems — along with a host of other questions that go to the heart of how financial giants like Goldman operate and what exactly they owe their clients.
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