News / USA

Goldman Sachs to Review Firm's Core Principals

Multimedia

There were tough questions and protesters outside Goldman Sachs' annual shareholder meeting, this week.  But as the chief executive of the giant Wall Street firm promised it would review its own business practices, investors reelected the company's board of directors.

Goldman faces government allegations of civil fraud and reports of a criminal investigation linked to the troubled subprime mortgage markets.

Some shareholders and others expressed their displeasure with an iconic American company that, to some, has become a symbol of excess.

There were tough questions from some shareholders of one of America's oldest and biggest investment banks.  Inside, one investor repeatedly called on the chief executive officer and chairman to resign.

Several protestors gathered outside the meeting in the financial district of New York, calling for more disclosure of cooperate spending on U.S. political campaigns. The scene outside the meeting comes three weeks after the firm was charged with civil fraud over subprime mortgages it sold to investors.  The U.S. Securities and Exchange Commission says Goldman lied about its risky securities just as the housing market was beginning to falter.

Company executives have since faced angry lawmakers, U.S. senators who accused them of "unbridled greed."  Chairman and CEO Lloyd Blankfein and others strongly denied wrongdoing but there are reports in the U.S. media of a criminal probe.

Annemarie McAvoy, a former federal prosecutor and has worked on Wall Street, said, "I certainly wouldn't be happy with the mess they are in right now. As far as the SEC, the criminal investigation, the Senate hearings, they have got so much going on right now. And that makes it very difficult."

Shareholders have suffered losses of more than 20 percent since the SEC filed charges.  The chairman, Blankfein, promised his investors that the company would review the practices that made it subject to legal trouble and public censure.

Katrina Vanden Heuvel is editor and publisher of the Nation Magazine. "If it was a meeting about anything, it was how they were going to be more introspective and reflective about their behavior and they've set up a committee on standards to look into moving with more integrity," she said.

Some economists said the global financial crisis was fueled by a lack of oversight of the subprime mortgage industry and its complicated investment products.

And some of Goldman's own traders boasted in e-mails that the company made more than it lost by making so-called short trades -- bets that its own risky mortgage products would lose money.

Despite the recent stock losses, some of Goldman's shareholders praised the embattled company's chief executive.

"I think he did what he was supposed to do. I think he was a market maker. Personnaly I'm an investor and I don't think he has done anything wrong. Of course, it's up for the courts to decide," said one shareholder.

All of Goldman's board members, including the chairman, were re-elected.

You May Like

Video VOA EXCLUSIVE: Iraq President Vows to Fight IS 'Until They Are Killed or We Die'

In wide-ranging interview with VOA Persian service reporter, Fuad Masum describes conflict as new type of fight that will take time to win More

Video Russian Anti-Corruption Campaigner Slams Putin’s Crackdown on Dissent

In interview with VOA Alexei Navalny says he believes new law against 'undesirable NGOs' part of move to keep Russian president in power More

Video On The Scene: In Ethiopia, 'Are You a Journalist?' Is a Loaded Question

VOA's Anita Powell describes the difficulties faced by reporters in fully conveying the story in a country where people are reticent to share their true opinions More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Expelled from Pakistan, Afghan Refugees Return to Increased Hardshipi
X
Ayesha Tanzeem
May 28, 2015 6:48 PM
Undocumented refugees returning to Afghanistan from Pakistan have no jobs, no support system, and no home return to, and international aid agencies say they and the government are overwhelmed and under-resourced. Ayesha Tanzeem has more from Kabul.
Video

Video Expelled from Pakistan, Afghan Refugees Return to Increased Hardship

Undocumented refugees returning to Afghanistan from Pakistan have no jobs, no support system, and no home return to, and international aid agencies say they and the government are overwhelmed and under-resourced. Ayesha Tanzeem has more from Kabul.
Video

Video Britain Makes Controversial Move to Crack Down on Extremism

Britain is moving to tighten controls on extremist rhetoric, even when it does not incite violence or hatred -- a move that some are concerned might unduly restrict basic freedoms. It is an issue many countries are grappling with as extremist groups gain power in the Middle East, fueled in part by donations and fighters from the West. VOA’s Al Pessin reports from London.
Video

Video Floodwaters Recede in Houston, but Rain Continues

Many parts of Texas are recovering from one of the worst natural disasters to hit the southwestern state. Heavy rains on Monday and early Tuesday caused rivers to swell in eastern and central Texas, washing away homes and killing at least 13 people. As VOA’s Greg Flakus reports from Houston, floodwaters are receding slowly in the country's fourth-largest city, and there likely is to be more rain in the coming days.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video Al-Shabab Recruitment Drive Still on In Kenya

The al-Shabab militants that have long battled for control of Somalia also have recruited thousands of young people in Kenya, leaving many families disconsolate. Mohammed Yusuf recently visited the Kenyan town of Isiolo, and met with relatives of those recruited, as well as a many who have helped with the recruiting.
Video

Video US Voters Seek Answers From Presidential Candidates on IS Gains

The growth of the Islamic State militant group in Iraq and Syria comes as the 2016 U.S. presidential campaign kicks off in the Midwest state of Iowa.   As VOA’s Kane Farabaugh reports, voters want to know how the candidates would handle recent militant gains in the Middle East.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Film Festival Looks at Indigenous Peoples, Culture Conflict

A recent Los Angeles film festival highlighted the plight of people caught between two cultures. Mike O'Sullivan has more on the the Garifuna International Film Festival, a Los Angeles forum created by a woman from Central America who wants the world to know more about her culture.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.
Video

Video Iowa Family's Sacrifice Shaped US Military Service for Generations

Few places in America have experienced war like Waterloo. This small town in the Midwest state of Iowa became famous during World War II not for what it accomplished, but what it lost. As VOA’s Kane Farabaugh reports, the legacy of one family’s sacrifice is still a reminder today of the real cost of war for all families on the homefront.

VOA Blogs