The Tarnishing Of Goldman Sachs

Last Saturday, I wrote that Goldman is screwed. I just didn't know how badly.

First there was Abacus, AIG, the SEC, and then God's work. Now there's this scathing article Blankfein flunks asset management.

Granted the article feels like reverse PR that hopes to reflect well on arch rival Morgan Stanley, but it's not everyday you see a Bloomberg article begin with "Blankfein flunks."

“A lot of wealthy clients like to say, ‘I have my account at Goldman, blah, blah, blah,’” says Michelle Clayman, founder of New Amsterdam Partners LLC.

Didn't a lot of investors once say the same of Bernard L. Madoff Investment Securities?

I've often wondered if Goldman was the king of the Street because it simply had the best access to information. Somewhere it seems that their access has been severed.

Let's see how well they perform without it.