Goldman Sachs'
A "first" Goldman doesn't want
This latest development is certainly embarrassing for Goldman. While executives at prominent firms, including Intel
Furthermore, this comes at a time when the bank is trying to lay low and repair a reputation that has been savaged during the credit crisis. Because of enormous negative media coverage – some of it well-deserved – it's a good bet that much of the public believes this article's headline is self-evident, and that Goldman Sachs is insider trading. Nevertheless, among a constituency far more important to Goldman than the general public -- corporate executives -- the bank's reputation remains excellent.
Shareholders needn't be concerned
Even if the government did file charges against Gupta (which looks like a big "if" at this stage), the long-term fallout of this particular incident for Goldman will likely be very limited. Gupta is a director, not an employee. Last month, the bank announced he wouldn't stand for reelection this year.
All the same, Goldman knows full well that it will take a lot longer to repair its reputation with the public -- and more importantly, legislators -- in the wake of the credit crisis than it did to repair its balance sheet.
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