Goldman Sachs & Its ReputationGroup 1Ethics and Professional Standards

Introduction

Goldman Sachs & Its Reputation

Collapse of AIG

ABACUS AC1 & SEC Investigation

Launch of Facebook IPO

Mending Its Reputation

Goldman Sachs-CNNhttp://globalpublicsquare.blogs.cnn.com/2010/05/02/gps-may-02-2010-lloyd-blankfein-chairman-ceo-of-goldman-sachs/

0:27-1:22

Goldman Sachs Practices

Not typical bank

Highly Risky CDOs-Collateralized Debt Obligation

Sophisticated & Knowledgeable Investors

No- Not a typical bank Highly Risky CDOs- Collateralized Debt Obligation Sophisticated/ Knowledgeable Investors

Explanation to Public

Paid SEC Fine for wrong doing

Inconsistent explanation given to media and public

Major party in collapse of Financial Market 2008 per Congress

Heavily tainted image

Paid SEC Fine for wrong doingInconsistency explanation given to media and publicMajor party in collapse of Financial Market 2008 per CongressHeavily tainted image

Collapse of AIGCDOs &CDSsAIG Bailout $182.3 billion TARP funds

ABACUS 2007- AC1Paulson & Co Mortgage-backed CDOs &Synthetic CDOsACA Management LLC & IKB

SEC v. Goldman Sachs LawsuitMarketing incomplete informationGive up $15 million profits & pay $530 million fine What did Goldman do wrong?

SEC Law & Regulations

Facebook IPO

$450 Million & 1.5 Billion (private)

Secret Deal Exposed

SEC Threat & Angry U.S. InvestorsFacebook IPO Controversy

Goldman Sachs & Its Reputation

Before the Housing Crisis-Clean Reputation

SEC Investigation

Public Perception-Poor Today

Industry Reputation After the Crash-Market Leader

Reputation Management

Conclusion

Steps Taken to Improve Reputations

Management Training

Client Perception

Q&A