That’s Lloyd Blankfein, chairman and chief executive of Goldman Sachs, having just taken his seat at the Senate witch trials.
How long before he burns?
Shares in Goldman were up 1 per cent at the close of trading in New York on Tuesday, in a market down 2 per cent – leading some to conclude that Goldman was winning on Capitol Hill. There were few fresh revelations during the first two witness panels – just a lot of gratuitous abuse from the panel-member side and time-wasting from the defense. Call it a relief rally.
But how long before Blankfein burns?
Various commenters here on FT Alphaville — and also this famous Gasbag — have made the point that former and existing partners at Goldman Sachs will now demand change at the top. They will have their own longer-term financial interests at heart when they do so.
But what is perhaps a little surprising is that it has not happened already.
Ever since the God’s work gaff, people familiar with the Goldman way have been predicting that Blankfein – and indeed his partner in crime, Gary Cohn – are finished. It is said that senior Goldman types never unpack their moving crates, such is the firm’s history of churn at the top. Whether the SEC’s action was fair or not, the fact is Goldman’s relations with its clients have been severely affected. Guilty or innocent, the damage is done.
So why no pungent smell of burning flesh as yet?
Cohn continues about his business and private life as though nothing has happened. He even found time to attend his daughter’s school concert on New York’s Upper West Side on Monday evening – just as Blankfein and team were steaming towards Washington.
Lloyd, meanwhile, has found it difficult to wipe that cheeky-chappie expression off his face. (He’s taking here for the good of America, remember.) Although it has to be said that there wasn’t much in the way of smirking on Tuesday.
It’s about time someone made a market here: 100-110. Days.
Related links:
Goldman’s woes mount in Senate grilling – FT
Live blog – FT