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Certain Goldman Sachs Shareholders Still Don't Get It

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Last week, Goldman Sachs announced that the experiment wherein upper management acted like it cared what shareholders think, validated their feelings, took out the trash without having to be asked and so on and so forth was over. Not sure if The International Brotherhood of Electric Workers missed it in the 10-K or if they saw it and thought Lloyd and Co were just JK'ing (we assure you: they were not!) but here we are.

The fund has filed a lawsuit in Delaware Chancery Court, seeking to recover money for the company on behalf of other shareholders. It seeks to stop Goldman from allocating roughly 47 percent of 2009 net revenue as compensation, saying such allocations "vastly overcompensate management and constitute corporate waste." The lawsuit also wants Chief Executive Lloyd Blankfein and others in management, rather than shareholders, to be responsible for charitable contributions that Goldman is making as a an apology for its activities.Goldman spokesman Ed Canaday said: "We believe the lawsuit is completely without merit."

Goldman Sachs Sued By Big Pension Fund Over Pay [Reuters]

Earlier: Goldman Sachs Sued By Shareholder Over Bonuses, Again


Goldman Sachs Can Fix This

A week ago today, a man named Greg Smith resigned from Goldman Sachs. As a sort of exit interview, Smith explained his reasons for departing the firm in a New York Times Op-Ed entitled "Why I Am Leaving Goldman Sachs." The equity derivatives VP wrote that Goldman had "veered so far from the place I joined right out of college that I can no longer in good conscience say I identify with what it stands for." Smith went on to note that whereas the Goldman of today is "just about making money," the Goldman he knew as a young pup "revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients." It was a culture that made him "love working for the firm" and its absence had stripped him of "pride and belief" he once held in the place. While claiming that Goldman Sachs has become virtually unrecognizable from the institution founded by Marcus (Goldman) and Samuel (Sachs), which put clients ahead of its own interests, is hardly a new argument, there was something about Smith's words that gave readers a moment's pause. He was so deeply distraught over the differences between the Goldman of 2012 and the Goldman of 2000 (when he was hired) that suggested...more. That he'd seen things. Things that had made an imprint on his soul. Things that he couldn't forget. Things that he held up in his heart for how Goldman should be and things that made it all the more difficult to ignore when it failed to live up to that ideal. Things like this: