News / USA

Goldman Sachs to Review Firm's Core Principals

Multimedia

Ayesha Tanzeem

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

Multimedia Social Media Documenting, Not Driving, Hong Kong Protests

Unlike Arab Spring uprisings, pro-democracy protestors in Hong Kong aren't relying on Twitter and Facebook to organize, but social media still plays a role More

Analysis: Occupy Central Not Exactly Hong Kong’s Tiananmen

VOA's former Hong Kong, Beijing correspondent compares and contrasts 1989 Tiananmen Square protest with what is now happening in Hong Kong More

Bambari Hospital a Lone Place of Help in Violence-Plagued CAR

Only establishment still functioning in CAR's second city is main hospital 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.
The Legacy of Jimmy Carter: The Preacher from Plainsi
X
October 01, 2014 10:45 AM
It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video The Legacy of Jimmy Carter: The Preacher from Plains

It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video Hong Kong Protests Draw New Supporters on National Holiday

On the 65th anniversary of the founding of Communist China, Hong Kong protesters are hoping to stage the largest pro-democracy demonstration since the 1989 Tiananmen protests. VOA's Brian Padden visited one of the protest sites mid-day, when the atmosphere was calm and where the supporters were enthusiastic about joining what they are calling the umbrella revolution.
Video

Video India's PM Continues First US Visit

India's prime minister is on his first visit to Washington, to strengthen political and economic ties between the world's oldest and the world biggest democracies. He came to the U.S. capital from New York, the first stop on his five-day visit to the country that denied him an entry visa in the past. From Washington, Zlatica Hoke reports Modi seemed most focused on attracting foreign investment and trade to increase job opportunities for his people.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid