5 reasons why Goldman Sachs' Board of Directors should not divorce CEO Lloyd Blankfein

5 REASONS WHY GOLDMAN SACHS’ BOARD OF DIRECTORS SHOULD NOT…..I watched Charlie Rose’s interview with Lloyd Blankfein tonight and I came away feeling sympathetic to Lloyd Blankfein for more reasons that one. Not that either Blankfein or Goldman need my sympathies. I am the one who need theirs. I like the way Blankfein says of Goldman “we are the best because we hire the best people.” So, if like me you’re not working for Goldman, now you know why….
So, 5 reasons why Goldman Sachs’ board should not divorce Blankfein?
1. He really doesn’t believe Goldman did anything legally wrong. So at least, his mens rea is in the right place.
2. He realizes that some Goldman employees may have acted unethically in this situation and he admits that changes need to be made in terms of recalibrating the mindset of the employees; plus he admits he’s a leader who has a responsibility to the public as well as to his employees.
3. He basically cops to the fact that Tourre’s emails were “callous” but claims that this does not reflect the culture of the firm. He even is in favor of the Volcker Rule to some extent, he says. (Although, he does insist that Goldman is a “market maker” so wouldn’t the Volcker Rule actually be bad for the firm’s bottom line if it prevents them from hedging, shorting, longing and punting as they see fit, since Volcker forces them to consider their “clients” above all else?)
4. He is unapologetic about Goldman making the amount of money – “I work very hard for my 10%” he says in response to some question by Rose about how Goldman would feel if their profits were 10% lower; it is clear he likes to make money and sees this as pure capitalism, which it is. And what’s so wrong with capitalism? What do we want? Communism? Socialism?
5. He readily vows to quit if he thinks it’s in the firm’s best interest; he also realizes his own vulnerability to the Board “they can fire me at anytime” he says; and he understands that the firm’s reputation is bigger than his ego and he vows to work on getting Goldman out of the PR black hole it dropped into. And isn’t that his job? When you get right down to it?