Just a banker but often a PR disaster
In 2009, Mr Blankfein joked to The Times of London that he was just a banker "doing God's work". That was in the same year Rolling Stone magazine described Goldman Sachs as "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money".
Mr Blankfein also had this to say about the amount of compensation Goldman Sachs staff received despite the financial crisis: "Is it possible to make too much money ... to have too much ambition? As the guardian of the interests of the shareholders and, by the way, for the purposes of society, I'd like them to continue to do what they are doing. I don't want to put a cap on their ambition. It's hard for me to argue for a cap on their compensation."
Mr Blankfein's appearances before the US Senate in 2010 have become legendary. It was there that he denied his investment bank had a moral obligation to tell its clients it was selling them complex financial products that it was also betting against. "I don't think we would have to disclose that," he told US senator Carl Levin.
Goldman Sachs has been running a charm offensive recently, with Mr Blankfein appearing more in public, with more off-the-cuff quips.
In Sydney on Friday, on how bond markets work: "Bankers may not mature, but debt matures."
On China's industrialisation: "If all you cared about was growth, you could leave those machines and old factories churning away, [but] if you care about breathing you'd better do some other things and sacrifice some growth in the short term."
Frequently Asked Questions about this Article…
Goldman Sachs has been at the centre of several public relations controversies, highlighted in the article by critical media coverage such as Rolling Stone's 2009 description of the bank as "a great vampire squid wrapped around the face of humanity," high-profile comments from then-CEO Lloyd Blankfein, and tense public scrutiny including his 2010 US Senate appearances.
Lloyd Blankfein was Goldman Sachs' chief executive who drew attention with candid and sometimes controversial remarks. The article cites his 2009 joke to The Times calling himself "just a banker 'doing God's work'," comments defending high staff compensation after the financial crisis, and his 2010 testimony before the US Senate that became widely discussed.
Rolling Stone's 2009 phrase "a great vampire squid wrapped around the face of humanity" was a scathing critique of Goldman Sachs' influence and profit-driven behavior. For everyday investors, such strong media criticism can signal reputational risk and public scrutiny that may affect the company's brand and investor sentiment.
Blankfein questioned whether it was possible to "make too much money" but ultimately resisted capping employee pay, saying he wanted staff to "continue to do what they are doing" for shareholders. That stance, especially coming after the financial crisis, fuelled controversy about fairness, corporate responsibility and executive pay.
During his 2010 testimony before the US Senate, Blankfein was asked about whether Goldman had a moral obligation to disclose to clients that it was selling complex products it was simultaneously betting against. He replied, "I don't think we would have to disclose that," a response that became widely reported and raised questions about conflict-of-interest disclosure practices.
According to the article, Goldman Sachs has been running a "charm offensive," with Blankfein appearing more publicly and offering more off-the-cuff remarks—an effort to repair reputation by being more visible and personable in public engagements.
In a recent public appearance in Sydney, Blankfein quipped on bond markets: "Bankers may not mature, but debt matures." On China's industrialisation he said if you only cared about growth you could keep old factories running, but if you "care about breathing" you might sacrifice some short-term growth—comments that framed trade-offs between growth and other priorities.
Investors should view PR controversies and executive comments as part of a company's reputation and governance profile. While media criticism and controversial remarks don't alone determine financial performance, they can affect stakeholder trust, regulatory scrutiny and investor sentiment—factors worth considering alongside financial metrics and long-term fundamentals.
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