Some Analysts More Amped Than Others About The Goldman Sachs Settlement

Author:
Bess Levin
Updated:
Jan 14, 2019
Original:
Jul 16, 2010

Brad Hintz, for instance, is so pumped he might very well throw his back out.

Bank of America Merrill Lynch said it upgraded its rating on Goldman Sachs to “buy” in a note to clients following the agreement yesterday. The settlement is “palatable” and the “probability of further action against Goldman Sachs” is much lower, said analysts led by New York-based Guy Moszkowski in the note. “I’m jumping up and down and telling my dad to buy it,” Brad Hintz said of Goldman Sachs’s stock.

Goldman Sachs 'Victory' Ushers Change For Wall Street [Bloomberg]

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Goldman Sachs

There is no 200 West Street in Bentonville, Arkansas.

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Back in May, we reported that there was a bit of tension between some growing first year analysts and higher-ups at Goldman Sachs. The issue was that the li'l fellas, antsy to leave the nest, were making arrangements with private equity firms and hedge funds for the following year, when they still had a little more than twelve months left until their two year commitment to GS was complete. And while Mama Lloyd and Papa Gar want nothing more than to see their babies succeed, they also felt like the kiddos were jumping the gun a little bit (and were in violation of the rule that when you live under their roof, you play by their rules, namely that no analyst shall take part in recruiting until six months from the time they’ve finished the two year program). To set an example, a bunch of particularly bad analysts were kicked to the curb and while it probably did put the fear of God into the others, who've remained on the straight and narrow ever since, it didn't make anyone very happy. So now this is happening: Goldman Sachs is doing away with two-year contracts for most analysts hired out of college, according to communications reviewed by The Wall Street Journal and confirmed by a Goldman spokesman. Analysts also won't get bonuses for completing the program, which has been around for a quarter of a century and has been viewed as a meal ticket to a lucrative Wall Street career. [...] The New York company's decision came after executives grew frustrated that many graduates weren't staying with the firm after completing the two years, and after Goldman fired a handful of analysts over the past year for signing on to work at other financial companies in violation of their contracts. Goldman has been reaching out to employees over the past two days to inform them of the changes, which will take effect for analysts who will start in 2013. "We think the historic two-year program is no longer the best approach for hiring and developing the careers of analysts in our banking and investment-management divisions," said the Goldman spokesman. "Making this change allows us to emphasize the longer-term career opportunities available atthe firm." No more fighting, no more sneaking around, no more need for anyone to put their foot down. If you want to leave after a year (or sooner), if you think you're grown up enough to make it out there on your own, by all means, go. That's your call and no one's gonna stop your or beg you to reconsider.* But if you decide you want to stay, be it for two years or twelve or twenty, Gary Cohn's thighs appreciate your commitment to the firm and look forward to working with you one day. Goldman Overhauls 2-Year Entry-Level Analyst Program [WSJ] Earlier: Goldman Sachs Does Not Look Kindly Upon First Year Analyst Who Plan In Advance *It's a mistake, of course, but it's yours to make.

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