Goldman Sachs, after a bit of a PR disaster last year (‘doing God’s work’, they were, apparently, according to that nice, humble and eminently charming Mr Blankfein) has taken what I consider to be the correct course of communications action – kept its head down, kept schtum and got on with its raison d’etre, which is the making of frankly obscene amounts of wonga. I’m not going to talk about its first quarter results – do the light clickdango here – but suffice it to say that amongst other little frissons was the figure of $5.5bn that they’ve given to their staff. Equivalenting to some $100k per employee, including the blokes who clean the loos. (No of course they didn’t – you figure it out.)
One of the recipients of some of the Goldman’s cash fallout – quite a lot, I am told by unreliable sources – is one Lucas van Praag (apologies to Mr vaan Prag if I got his name wrong), Director of Corporate Communications of the Sachs Parish. It should be said that, following last year’s PR shambles, some did wonder whether he’d actually earned his money.
So did I – until I read this. It takes a genuinely skilled exponent of the spinmeister’s art to come up with the idea of leaking the suspicion of fraud in order not only to initiate an investigation by the FSA, but also get none other than Gordon ‘Wingnut’ Brown lobbying for it.
It’s a stroke of genius. So Goldman Sachs gets investigated – worse, it’s found guilty of misleading investors in the area of toxic stocks. It gets fined. It has to lose the middle-ranking member of staff that (apparently) landed it in the mess in the first place.
But – but. The fine will be but a fraction of its profits. One gets the feeling that the middle-ranking member of staff is persona non grata anyway and is already washed and in the laundry basket waiting to be hung out to dry. The loser in the whole toxic stocks issue was RBS – hardly the most popular or stainless of financial institutions.
No. On balance, all this investigation will succeed in doing is making people see that nice Goldman Sachs as the underdog, unfairly pursued – nay, scapegoated – for something that could have happenend to anyone. And while people are thinking this, they won’t be thinking about the telephone number profits and fat bonuses that have never stopped being a part of the Goldman’s culture.
Mr van Praag – there’s another big sack of money waiting in your office for you. Enjoy.