According to a New York Post report on Thursday, Goldman Sachs may be reaching the end of its rope when it comes to fighting off the government. After CEOLloyd Blankfein and other top execs faced an intensely heated cross-examination earlier this week from legislators who questioned the company’s ethics and client-focused behavior — perceptions that continue to flood the public mindset as the high-profile showdown escalates — Goldman’s image may no longer be able to endure such a flogging as the SEC gears up for its case. “It’s almost a certainty that there will be a settlement,” the Post quoted a source as saying.
Goldman continues to deny charges that it hid vital information from investors about a mortgage-related security, but is opting to end a legal fight rather than endure a repeat of the public flogging it received this week, Reuters reports in an article bySteve Slater and Douwe Miemema.
Other experts tend to agree that Goldman’s reputation — not to mention the market in general — is already too flimsy to withstand more whipping. “This is a suit which I think should be settled promptly — not just for Goldman Sachs, not just for the industry, but for the economy as a whole,” Arthur Levitt, a venerated former SEC chairman and adviser to Goldman, told Bloomberg TV on the day of the Senate hearing, Bloomberg Businessweek reports.
LIES IN PR
One thing about the “justice of life” – if you continue to deceive the public as a business you are going to eventually get slaughtered by your own “PR.” And yes, I am using the term “PR” here derogatorily.
What’s happening to GS is the best example of what happens when you lie in PR. And in my opinion, they deserve every bit of it.