Goldman Sachs (GS) May Have Trouble Overcoming Negative Image - Gasparino

According to FOX Business Network's Charles Gasparino, Goldman Sachs Group Inc. (NYSE: GS) hired a public relations firm to find out how damaged the firm's image has become since the civil-fraud suit and pending settlement with the Securities and Exchange Commission.

Bad publicity has not fazed Goldman in the past as the firm saw itself as being outside of the commercial banking market, but according to Gasparino the bank may feel the impact from business not wanting to associate themselves with Goldman's image.

"Companies are much more politically correct than ever before," Gasparino said. "The companies that might want to do business with Goldman Sachs, do they really want to do business with the company that is infamously labeled the 'vampire squid?' They are having some problems in the investment banking area. And not only that, the government isn't dealing with them."

"Following the settlement with the SEC, Goldman Sachs went out and did a brand survey and found that after the settlement they received some positive publicity but even after the settlement their image did not improve. The alarming thing for Goldman Sachs is that their image negatives seem to be cemented into the general public. More than incidentally, the poll found that Goldman’s image is as bad as BP's (NYSE: BP) or even worse."

Gasparino added that the state of Goldman's public image will result in Lloyd Blankfein not being the firm's Chairman this time next year, and he may not be its CEO as well, as Goldman will likely bring in management that deals more with image problems.

Shares of Goldman Sachs are up 10 cents in aftermarket movement Monday to $148.30, after closing regular trading up 82 cents.

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