It was fascinating to see the resignation letter of Goldman Sachs’ Executive Director, Greg Smith, published in the New York Times this week. The letter wiped $2bn off the market value of the firm in one day.
Greg joined Goldman Sachs as a graduate twelve years ago and ultimately became head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa. What makes the letter special is that this does not appear to be the rant of a disgruntled employee. Instead, it reads like a considered analysis of a fundamentally changed environment by a key management team member who was actively involved in the recruitment and mentoring of graduates.