GOLDMAN PR RISK FACTOR

Excerpt from Goldman's Annual Report on Form 10-K:

"The financial crisis and the current political and public sentiment regarding financial institutions has resulted in a significant amount of adverse press coverage, as well as adverse statements or charges by regulators or elected officials. Press coverage and other public statements that assert some form of wrongdoing, regardless of the factual basis for the assertions being made, often results in some type of investigation by regulators, legislators and law enforcement officials or in lawsuits. Responding to these investigations and lawsuits, regardless of the ultimate outcome of the proceeding, is time consuming and expensive and can divert the time and effort of our senior management from our business.  . . . . . Adverse publicity, governmental scrutiny and legal and enforcement proceedings can also have a negative impact on our reputation and on the morale and performance of our employees, which could adversely affect our businesses and results of operations."

Here is what it should say:

“We operate a global ponzi and financial racketeering organization. We fleece investors and take hedging positions opposite everyone on this planet, including our highly valued clients and our own grandmothers. Our risks are reckless in relation to our capital and we rely on Federal backstops for all of our trading activities. Our bankers are paid handsomely for this divine work. Many unbelieving commoners are enraged by our uncanny success. In order to placate the masses, we regularly encourage our government operatives to initiate sham investigations and hearings that rarely if ever impact our ponzi operating model. From time to time, these activities can be expected to lead to unflattering publicity for our executive officers. This invariably leads to greater executive compensation costs.”

WB7: Honest, investment banking is supposed to reside at the intersection of Trust and Liquidity. Goldman is nowhere near that address.