A lesson in defection from Goldman Sachs

Just about in time for Occupy Wall Street’s half-birthday last month, there was what might ostensibly seem to be a fitting reason to celebrate: Goldman Sachs executive Greg Smith quit his job and, to massive fanfare, penned a New York Times op-ed denouncing what his company has become. With those 1,300 words, Goldman’s stock price dropped 3.4 percent, vanishing more than $2 billion from its worth and necessitating a commiserative house call from the mayor of New York. The trouble is, Smith didn’t really echo any of the Occupy movement’s concerns. There was no mention of the company’s habit of self-serving market manipulation, contributing to downturns from the Great Depression to the Great Recession, or its present hijacking of the very political system tasked with regulating it. The word “bailout” does not appear. What really seemed to disturb Smith, rather, was that this institution was putting its own interests before those of its obscenely wealthy clients. (He had personally worked with “two of the largest hedge funds on the planet, five of the largest asset managers in the United States, and three of the most prominent sovereign wealth funds in the Middle East and Asia.”) The company from which he’d once learned that obscenely wealthy clients come first was betraying that solemn trust so as to enrich its obscenely wealthy self. This was unconscionable, in Smith’s view, so he decided to give his longtime employer a big kick in the shins — all, it seems, in the service of a hope that Goldman Sachs might once again defraud the universe in a more gentlemanly fashion.