Now that Greg Smith, ping-pong enthusiast and now former Goldman Sachs employee, has secured his place in the annals of legendary resignations (like this one), the fallout from his NY Times op-ed f*ck-you to Goldman is being analyzed. Goldman's market value fell by $2 billion yesterday, and now the firm is trying to figure out why Smith was so upset.
According to the Wall Street Journal, "As part of the internal review, Goldman officials began talking Wednesday to Mr. Smith's former bosses and colleagues in London, hoping to determine whether he raised any concerns with them, a company spokesman said. Mr. Blankfein and other executives also spent much of the day discussing the matter with Goldman directors, shareholders and clients." Smith, who was described as "executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa" in the op-ed but some said he was "just" a vice president—Dealbook reports, "Some within Goldman sought to portray Mr. Smith as a lone wolf — he did not manage anyone — who had failed to become a managing director. "
And while Smith complained about Goldman's money-first, customers-last mentality, one client told Dealbook that "the letter [was] 'naïve,' saying that the firm had been trading against its clients for years. 'Come on, that is what they do and they are good traders, so I do business with them.'"
Smith's salary is also being mocked: According to various sources, he "only" made $500,000-750,000 annually, which is apparently chump change for Goldman. As for his next move professionally, many think he's killed his chances within finance, but maybe he could lead Occupy Wall Street.