Speculation

Is Blankfein Done at Goldman?

Goldman Sachs employees may want to start preparing the farewell party for CEO Lloyd Blankfein. “Does this end Blankfein's reign as head of Goldman?” Stephen Gandel asks after the bank was charged with securities fraud on Friday. “I think so. It's a big deal for an investment bank to be charged with securities fraud. And it is not just a coincidence that Goldman would get hit with a fraud case when Blankfein was CEO. Even though he is not named in the complaint, Blankfein is to blame. He pushed the firm to become less of an investment bank and more of a trading behemoth.” Reuters' blogger Felix Salmon adds that, even if the SEC’s case against Goldman is weak, as Henry Blodget claims, its defenses are “not going to hold much water with the firm’s precious client relationships.” He predicts though that ousting Blankfein won’t change Goldman’s corrupted culture: “The firm is run by traders now, and replacing one trader with another will not make any difference.”