I was struck by a March 24 letter titled "Goldman Sachs critic in wrong business."
The author claimed disdain for former Goldman executive Greg Smith for revealing Goldman's duplicity in his New York Times column. The letter writer stated, "As a (Goldman) shareholder, I don't want employees of a company I own moralizing about legitimate revenue that goes to my bottom line."
The problem with the author's position focuses on the words "legitimate revenue to my bottom line," which included Goldman's $550 million settlement with the Securities and Exchange Commission for intentionally stacking a $1 billion investment in favor of John Paulson's hedge fund at the expense of other Goldman investors; its history of trading on insider information, a legend in market manipulation; and significantly contributing to the crash of subprime mortgages that caused the $13 trillion bailout of Wall Street, including Goldman, while paying $20 billion in executive bonuses.
Goldman and Wall Street directly contributed to the evaporation of about $73 trillion in global wealth through their subprime and derivative debacles.
Goldman's contribution to the subprime morass resulted in the loss of $7 trillion in stock value, a $7.5 trillion evaporation in home values and high national unemployment. The company's stock sank by 62 percent in 2008. Apparently, these are "legitimate losses" to the letter writer's bottom line, and I don't see anything legitimate about how Goldman makes its money. But I applaud Smith for his candor and courage; he will never be hired by Wall Street again.
William A. MacPhee
Hilton Head Island