Goldman Sachs and Its Reputation Harvard Case Solution & Analysis

Goldman Sachs was in the bank, but do not take deposits, issue credit cards, make home loans, or to interact with consumers. For much of its history, Goldman was organized in partnership and to work as an investment bank engaged in underwriting new securities to raise funds for corporations and government agencies, advising clients in mergers and acquisitions, and asset management clients. He started in the arbitration of securities transactions and the risks in the 1950s, when he developed his philosophy of being "long-term greedy", which the bank is understood to focus on long-term profitability rather than short-term performance. Goldman went public in 1999, predicts that investment banking will continue to provide most of its revenue and profit. Soon, however, his own trading and trading on behalf of customers began to dominate as its revenue and profit streams. Management of the company also shifted from investment bankers to traders such as Henry Paulson and CEO Lloyd C. Blankfein. Goldman was a major player in the events that led to the financial crisis and is one of the major market participants CDO. As with most financial institutions, Goldman was heavily criticized for their role in the crisis. Disclosure of information that allowed Goldman investor to select securities for inclusion in the CDO, the investor is designed for short caused an uproar, especially because customers were not informed about the role of the investor. Media covered the issue extensively, Congress held hearings, SEC filed suit against Goldman, private investors have filed lawsuits, and some issuers of securities of the company avoided. Goldman's reputation has been damaged. The company was faced with the decision on how to restore its reputation as the name of the new rules for banks as a result of Dodd-Frank and the Fed action. "Hide
by David P. Baron Source: Stanford Graduate School of Business 13 pages. Publication Date: January 1, 2011. Prod. #: P77-PDF-ENG

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