Money and Power

Money and Power

How Goldman Sachs Came to Rule the World

Book - 2011
Average Rating:
4
Rate this:

From the bestselling, prize-winning author of THE LAST TYCOONS and HOUSE OF CARDS, a revelatory history of Goldman Sachs, the most dominant, feared, and controversial investment bank in the world  
 
For much of its storied 142-year history, Goldman Sachs has projected an image of being better than its competitors--smarter, more collegial, more ethical, and far more profitable. The firm--buttressed by the most aggressive and sophisticated p.r. machine in the financial industry--often boasts of "The Goldman Way," a business model predicated on hiring the most talented people, indoctrinating them in a corporate culture where partners stifle their egos for the greater good, and honoring the "14 Principles," the first of which is "Our clients'' interests always come first."
 
But there is another way of viewing Goldman--a secretive money-making machine that has straddled the line between conflict-of-interest and legitimate deal-making for decades; a firm that has exerted undue influence over government since the early part of the 20th century; a company composed of "cyborgs" who are kept in line by an internal "reputational risk department" staffed by former CIA operatives and private investigators; a workplace rife with brutal power struggles; a Wall Street titan whose clever bet against the mortgage market in 2007--a bet not revealed to its clients--may have made the financial ruin of the Great Recession worse.
 
As William D. Cohan shows in his riveting chronicle of Goldman''s rise to the summit of world capitalism, the firm has shown a remarkable ability to weather financial crises, congressional, federal and SEC investigations, and numerous lawsuits, all with its reputation and its enormous profits intact. By reading thousands of pages of government documents, court cases, SEC filings, Freedom of Information Act papers and other sources, and conducting over 100 interviews, including interviews with clients, competitors, regulators, current and former Goldman employees (including the six living men who have run Goldman), Cohan has constructed a vivid narrative that looks behind the veil of secrecy to reveal how Goldman has become so profitable, and so powerful.
 
Part of the answer is the firm''s assiduous cultivation of people in power--dating back to 1913, when Henry Goldman advised the government on how the new Federal Reserve, designed to oversee Wall Street, should be constituted. Sidney Weinberg, who ran the firm for four decades, advised presidents from Roosevelt to Kennedy and was nicknamed "The Politician" for his behind-the-scenes friendships with government officials.  Goldman executives ran fundraising efforts for Nixon, Reagan, Clinton and George W. Bush.  The firm showered lucrative consulting or speaking fees on figures like Henry Kissinger and Lawrence Summers. Famously, and fatefully, two Goldman leaders-- Robert Rubin and Henry Paulson--became Secretaries of the Treasury, where their actions both before and during the financial crisis of 2008 became the stuff of controversy and conspiracy theories. 
 
Another major strand in the firm''s DNA is its eagerness to deal on both sides of a transaction, eliding questions of conflict of interest by the mere assertion of their innate honesty and nobility, a refrain repeated many times in its history, most notoriously by current Goldman CEO Lloyd Blankfein''s jesting assertion that he was doing "God''s work."
 
As Michiko Kakutani''s New York Times review of HOUSE OF CARDS said, "Cohan writes with an insider''s knowledge of the workings of Wall Street, a reporter''s investigative instincts and a natural storyteller''s narrative command." In MONEY & POWER, Cohan has marshaled all these gifts in a powerful and definitive account of an institution whose public claims of virtue look very much like ruthlessness when exposed to the light of day.
 
 

 

Publisher: New York : Doubleday, 2011
ISBN: 9780385523844
Branch Call Number: 332.66 COH 2011
Characteristics: x, 658 p.

Opinion

From the critics


Community Activity

Comment

Add a Comment

v
vmed
Dec 27, 2014

V tells people to make more money

s
sage_lh
Jan 15, 2013

So Far this book has informed me of what happened during the 2007 - 2008 financial crisis surrounding abacus and other financial engineered products broght to market by Goldman Sachs and others.

The book is a must read for anyone who wants to know why the crisis came to be and who is to blame. The book addresses another good question and that is How can we trust our investment banks when they behave like this.

Recommended read for anyone investing in low risk securities but was likewise seriously damaged and wants to know what the hell happened. Interstingly, only Bernard Madoff went to jail and his deeds did not freeze the markets Goldman sachs deeds did.

d
donnad_1
Jan 18, 2012

Great%25252520book%2525252C%25252520but%25252520alot%25252520to%25252520absorb%2525252E%25252520%25252520Would%25252520recommend%25252520to%25252520anyone%25252520that%25252520can%25252527t%25252520quite%25252520grasp%25252520the%25252520power%25252520%25252520behind%25252520the%25252520scenes%25252520of%25252520our%25252520economy%2525252E

l
lilwordworm
Dec 21, 2011

This book took patience to read. Even though it is interesting, it is fact- filled and dense. Not a good choice for a casual read.

Age Suitability

Add Age Suitability

There are no age suitabilities for this title yet.

Summary

Add a Summary

There are no summaries for this title yet.

Notices

Add Notices

There are no notices for this title yet.

Quotes

Add a Quote

There are no quotes for this title yet.

Explore Further

Browse by Call Number

Recommendations

Subject Headings

  Loading...

Find it at FSPL

  Loading...
[]
[]
To Top