Morgan Stanley (MS) CEO Gorman Says Goldman (GS) Op-Ed 'Not Fair'
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Following J.P. Morgan (NYSE: JPM) CEO Jamie Dimon's comments on the issue yesterday, Morgan Stanley (NYSE: MS) boss James Gorman weighed in on the op-ed in the NY Times written by Greg Smith criticizing Goldman Sachs (NYSE: GS) culture, environment and employees.
Commenting at a Nasdaq and Fortune hosted event Thursday, Gorman said the comments were not fair to Goldman. Overall, he said he didn't care what one employee thought, saying, "At any point, someone is unhappy…[t]o pick a random employee, I don't think it's fair. I don't think its balanced."
Like Dimon, Gorman also told his employees not to use the criticisms of Goldman to his firms advantage.
The following is purely opinion, unrelated to the WSJ piece: Let's be honest for a sec here, how did folks like Dimon and Gorman become CEOs? Are they really that much superior to their cohorts, or did they eventually learn how to play the game so well that it became easier to manipulate the rules. Did Gorman, Dimon, et al, grow halos all of a sudden? Sure, for the press they're going to say not to bash Goldman because its "not right" and "now how we do business." But banking is rather cutthroat, becoming even more so following the financial mess of 2008. If this author were an investor in a bank or financial (note: the writer isn't and doesn't plan to be over the next week), he would hope then that the CEOs would try to nip a little from the top. You know, seize on a little weakness. Shareholders have been hit hard over the last two years, and many are still seething.
Or, maybe they have the same culture and setup. Banking is a tough industry and we're sure many have read about some of the hazing firms like Goldman employ to prep incoming employees for the competitive, sometimes thankless, pressure-filled job of acquiring large sums of money for firms, or delivering outstanding performance amid a market that just doesn't want to cooperate. Not only do many of the bankers have to carry a certain air about them, but an institutions very makeup has to echo and encourage the competitiveness and fighting spirit.
How, then, do Morgan Stanley, J.P. Morgan, and other Wall Street firms, acquire clients? Fruit baskets and smiles? Not for the type of clients sitting on millions in free cash. Not when they're trying to get on the largest, most sought after IPO, or advise on a record M&A deal.
Finally, does anyone believe banking CEOs? The financial mess which cost the U.S. billions in bailout money started on Wall Street (arguably, we know) only a few years ago. There have been accusations and transcripts and emails about some of the unscrupulous things the executives accomplished to gain a little profit at someone elses disadvantage. If you believe the CEOs, just speak with someone currently out of a job or who just lost a house, see if they share the same opinion.
Just a thought.
Shares of Morgan Stanley are trading slightly lower Friday afternoon.
Commenting at a Nasdaq and Fortune hosted event Thursday, Gorman said the comments were not fair to Goldman. Overall, he said he didn't care what one employee thought, saying, "At any point, someone is unhappy…[t]o pick a random employee, I don't think it's fair. I don't think its balanced."
Like Dimon, Gorman also told his employees not to use the criticisms of Goldman to his firms advantage.
The following is purely opinion, unrelated to the WSJ piece: Let's be honest for a sec here, how did folks like Dimon and Gorman become CEOs? Are they really that much superior to their cohorts, or did they eventually learn how to play the game so well that it became easier to manipulate the rules. Did Gorman, Dimon, et al, grow halos all of a sudden? Sure, for the press they're going to say not to bash Goldman because its "not right" and "now how we do business." But banking is rather cutthroat, becoming even more so following the financial mess of 2008. If this author were an investor in a bank or financial (note: the writer isn't and doesn't plan to be over the next week), he would hope then that the CEOs would try to nip a little from the top. You know, seize on a little weakness. Shareholders have been hit hard over the last two years, and many are still seething.
Or, maybe they have the same culture and setup. Banking is a tough industry and we're sure many have read about some of the hazing firms like Goldman employ to prep incoming employees for the competitive, sometimes thankless, pressure-filled job of acquiring large sums of money for firms, or delivering outstanding performance amid a market that just doesn't want to cooperate. Not only do many of the bankers have to carry a certain air about them, but an institutions very makeup has to echo and encourage the competitiveness and fighting spirit.
How, then, do Morgan Stanley, J.P. Morgan, and other Wall Street firms, acquire clients? Fruit baskets and smiles? Not for the type of clients sitting on millions in free cash. Not when they're trying to get on the largest, most sought after IPO, or advise on a record M&A deal.
Finally, does anyone believe banking CEOs? The financial mess which cost the U.S. billions in bailout money started on Wall Street (arguably, we know) only a few years ago. There have been accusations and transcripts and emails about some of the unscrupulous things the executives accomplished to gain a little profit at someone elses disadvantage. If you believe the CEOs, just speak with someone currently out of a job or who just lost a house, see if they share the same opinion.
Just a thought.
Shares of Morgan Stanley are trading slightly lower Friday afternoon.
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