Goldman Sachs tries to make amends

I went to work for a company called Ayco about seven years and they were bought out by GS. I never would have willing worked for these dirtbags. Anyway, after six years, I was laid off from Goldman Sachs on November 17, 2009 (a year ago). At that time we were all given severances of three months to a year. Upper management got a year -- support staff got three months. Everyone laid off had been with the company over five years. They laid off 15 percent of its workforce simply so they could get the free bailout money. Everyone in my area that got laid off had been excellent employees and had all gotten excellent reviews over the years. They did not offer early retirement, it was not last in/first out, they did not ask if anyone wanted to leave -- they just cut people. The issue lies at the people they chose to cut. Out of the 15 in our office that got cut only three were men -- all of them in management or professions. Out of the 15 let go, nine of them were women over the age of 40. Out of the 15, two were disabled (both had worked for the company over 15 years each), one in a wheelchair and one legally blind. One person had been with the company 29 years and they called him and laid him off while he was in his hospital bed on medical leave facing surgery. Out of the 15 people let go, eight had had recent serious illnesses and now their health is in jeopardy because of the high cost of health insurance. In this past year, at least two of the 15 has had to file Chapter 13 and three are at risk losing their homes, one already lost her home. Now to show you just how dirty this company is -- they took the bailout money because heaven knows if they went under the country would be ruined, and within weeks of laying these loyal, hardworking, experienced people (albeit ones with health and disability issues as well as being older women), they started advertising for their replacements. The accountant who was in the hospital had his job advertised before he even was laid off. The reasons we were told they were laying us off was that they couldn't afford us -- yet they paid everyone pretty good severance packages and replaced every employee before their severance even ran out! They never offered the displaced experienced employees their jobs back. Add that to the fact, that Goldman now brags that they are paying all of their employees a bonus this year that averages $700K per person, not to mention that they paid bonuses last year when they were doing so badly that they needed bailout money and they laid off 15 percent of their staff. One of those $700K bonuses would have paid a year's salary for everyone who had been laid off in my division. One bonus. How many bonuses did the pay? They laid off people who had given many good years to the company, had many good years to still give, had gotten excellent reviews throughout the year, who had experience and job knowledge and specifically put people out of the street who would have trouble finding work due to age and disability. So what is my take? If a company lays people off and then shows such a significant profit that they can pay huge bonuses, then they didn't need to lay the people off, then they need to be footing the entire bill for the laid off people's unemployment benefits as long as they are turning a profit that could have paid for those employees to continue at their jobs. There is NO reason the government should be footing the unemployment bill for Goldman Sachs employees. If they have the money to replace those employees immediately, then they certainly did not need to take the bailout money, and ultimately they did not need to lay off the experienced, respected employees. So when I read all this crap about doing "God's work" and see all of the outrageous bonuses and how Blankfein just loves people I freaking want to puke. He throws his own people to the wolves and then tries to spin.

I think this is great. It's obviously for good publicity, but in the end does help businesses. $500m is a lot of $$. Way more than JPMorgan Chase is giving away with their Facebook stuff.

justme518 has a great sob story to share with everyone, but seems to be forgetting the fact that that's how the world works! It's not about having money now that could have been spend to keep u in ur job or any reality in the "we can't afford you" statement. Anyone smart person knows that when jobs are cut it's because there is a need to cut jobs and either your job or you (often times its you) are removable!

Also, Barbara Kiviat, you wrote $500 billion a few times in this article when u meant to write million.

You need to take your blinders off Quatrahan -- that is the way the world used to work. Expect a lot of changes in the future. There are more people and money sitting on the various Main Streets in this country than are on Wall Street.

Every structure whether it is a building or a business organization -- whatever -- MUST have a solid sturdy support system or it will fall down. When the powers that be realize that, we may get some equilibrium in this country -- but as long as they keep abusing the support structure, i.e., Main Street, the American people, the people who work for them -- then they are doomed to fail. And when giant fall down, it is usually not pretty.

The fact is, GS could afford the people they laid off. They gave sizeable severance packages and within a few months of laying people off, they replaced them. They also gave themselves large bonuses last year and this year -- money that could have been used to take care of their support system, i.e., employees. On top of that, many of these people they laid off are still unemployed and the government is providing them unemployment benefits. So it is okay for GS to lay off thousands of people that they replace within a few months (interestingly enough right after they paid back their bail out money) and then let the government pick up the slack on their unemployment when they laid people off saying they didn't have the money -- yet they have enough to brag about paying an average of $700K per employee in bonuses. Get real. They had the money. They didn't need to lay the people off. They laid people off to qualify for the bail out money. And now the government is footing the bill for the unemployment benefits for these people.

That's the real world. The old world and the old business models are changing. You can take that to the bank. It will probably do you more good than spouting off Goldman Sachs Corporate Spin.

The $500 million though is really a drop in the bucket compared to the kinds of numbers this company throws around. Its almost insulting in a way, but at this point we are the dog underneath the table and are willing to take whatever scrapes these people want to toss our way.

So are we supposed to get excited about this? I wouldn't exactly say that, but I wouldn't completely scoff at it either. They didn't have any reason or were mandated to do this in anyway. Of course its a blatant PR move, but its not a bad one. Its really in their best interest too for as the economy soars so do their profits. Its really just a win win situation for everyone involved. Some more money possibly in line with the kind of money they've been paying out in bonuses would have been nice, but who are we really to complain.

I don't really blame Goldman Sachs for the financial crisis, they were simply going about their businesses. Looking back at it, things could have been done differently of course, but hindsight is always 20-20. Its refreshing to see someone step up to the plate and admit that they didn't handle things as well as they could have. Is it sincere? Probably not, but at this point its all we're going to get and its better than nothing.

Check out my blog on the Goldman Sach's penance offering at.... http://www.thedebtgazette.com/2009/11/goldman-500-million-penance/

I think the Goldman execs should be hunted for sport, much like a bounty on coyotes.

They have looted America, and still maintain control of the Treasury.

I will forgive Goldman Sachs when it is explained what kind of collusion went into AIG paying them 100% on the dollar for their worthless paper with public money.

In other words, after they have repented, and done prison time, I am more than happy to forgive them.

A sincere apology would include how Goldman is going to do things different in the future, including benchmarks of how we can measure their new behavior.

It would include how they recognize the underlying cause of the panic was lack of transparency, and how they are going to lead Wall Street toward true transparency, instead of having secret meetings with a treasury secretary who used to work for GS.

It would welcome hearings into their market manipulating predictions of ever higher oil prices in 2008.

The $500 million is a token. Suspend 90 percent of their bonuses, pay back 10 billion to the government for the money they took from AIG.

And then have an auditor come in to look at their books, to find out if their profits are for real, or just Enron bookkeeping.

Anybody who lets GS off the hook because of a feeble apology and a token is a fool.

[...] Goldman Sachs tries to make amends - More on the recent PR offensive. [...]

You should shutter financial contagion is a virus that runs through the banksters economy. Finance capitalism has overshadowed all aspects of the real economy! Trillions a day trade notionally on the Forex market, in 15-17 days more money is transferred than total trade! And who does this s@*t our lovely banks. Capitalism has become a global casino, and what's worse it always has been. Now thank to all of the US talent going into gs, bac, c, and others like them innovation is being sucked into the financial industry and I think we all see where these bizarre hybrid instruments got us?

In short, speculation sends our best and brightest into the financial industry. Irving Fisher wrote of this so did George Goodman (Adam smith).

THE NIGHT BEFORE SQUIDMAS
WilliamBanzai7 Blog

Twas the night before Squidmas, when all through Goldman Squid house
Not a creature was stirring, not even a louse;
The bonus stockings were hung by the chimney with care,
In hopes that St. Blankfein soon would be there;

Bailed out bankers and traders were nestled all snug in their beds,
While visions of bonus booty danced in their heads;
And Timmy Geithner in his silly 'kerchief with no salary caps,
Had just settled down for another long nap.

When out on Main Street there arose such a clatter,
Main Streeters were screaming why should Wall Street keep getting fatter and fatter?
With unemployment rates rising and so many a cupboard bare.
All those finagling financiers could do was just sit there and stare.

Then, what to their wondering eyes should appear,
But a hodgepodge of new Bills threatening all they held dear,
They all thought they were bigger and better than most
But those 2 big 2 fail deadbeats soon would be toast.

Then in a moment before it could all stick,
Those financial extortionists emptied their bailout stockings and took the loot quick,
And out in the distance they heard St. Blankfein exclaim, ere he drove out of sight,
"Happy Squidmas to Goldman Squid, and to all squids a good-night!"