Guilting Unrefined Goldman.

I see Greg Smith is leaving Goldman Sachs. Normally, I wouldn’t care. I don’t know him and never heard of him until The New York Times devoted the bulk of their Op-Ed page (3/14/12) to his valedictory address. Why would they trust the most expensive real estate in journalism to a banker who participated in – and profited from – the mortgage crisis? True, Mr. Smith says a lot of nasty things about his former employer, but why is this newsworthy and not just a breach of job interview etiquette?

“I don’t know of any illegal behavior,” writes Mr. Smith, “but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly in line with the client’s goals? Absolutely. Every day, in fact.” If that’s whistle-blowing, it’s a dog whistle. It gets worse, though. “. . . managing directors refer to their own clients as ‘muppets’” and, as if that wasn’t bad enough, “It makes me ill how callously people talk about ripping their clients off.” Those aren’t indictments, those are aesthetic objections.

Okay, he’s not exactly kicking butt. Is he taking names? Yes. “ . . . current chief executive officer, Lloyd C. Blankfein, and the president, Gary D. Cohen, lost hold of the firm’s culture on their watch.” Of all the horrible things you can say about Mr. Blankfein, (for examples, see “Goldfellas” TFT 8/6/9, “Sounds like Gold in Sacks” TFT 10/20/9, “Sun-Sachs Boulevard TFT 7/27/10, “A letter to our clients from Gold Ransacks” TFT 11/13/10 and “The role of Lloyd C. Blankfein will be played by Mel Gibson” TFT 7/20/10) he chose a pretty pale one. It’s true, of course. I'm willing to believe that all his damning criticisms of Goldman Sachs are true. What I’m groping for is his moral authority. Why should I - or a Wall Street professional – allow him to tell us what’s right?

What was Greg Smith doing while everyone else was worshipping the Golden Calf? He’s only too glad to tell us – up to a point. Did you know that he managed a trillion dollars in assets? I didn’t. I don’t even know if that’s good. To paraphrase Sen. Everett Dirksen, “A trillion here, a trillion there and pretty soon you’re talking about real money.” Mr. Smith, in fact, slips his entire resume into his Op-Ed piece (no mean achievement itself) but neglects to tell us how he rose from intern to Executive Director in twelve years without succumbing to temptation, how he was promoted by Lloyd C. Blankfein while disdaining him and most, importantly, how he could sell derivatives to most of the world without being compromised. What are derivatives? Lucrative and complicated products that . . . never mind.

Is Greg Smith a martyr? Did he risk his job by writing this piece? Who knows? He tells us nothing about the circumstances leading up to his “leaving” Goldman Sachs. Is he endangering his future by publishing it? I’m assuming, at this point, that Mr. Smith doesn’t have to work for a living. So, he can either retire to the golf course or if he can find an impeccably client-centered financial firm that doesn’t place too high a value on loyalty, he may continue to polish his resume – and, presumably, his halo. I would, however, offer him one piece of advice. If you’re thinking of joining an exclusive country club or working in a small, highly-refined private bank, don't mention your bronze medal in Israel’s Maccabiah games. I know you’re proud of it, Mr. “Smith,” but some things you should keep to yourself.