Daily VideoFebruary 12, 2010
What does Goldman Sachs Do?
Goldman Sachs, or Goldmine Sachs, as some call it, reported a record $13.4 billion dollar profit last year. But just how is that money made?
The CEO of Goldman, Lloyd Blankfein, claims that the bank is doing “God’s work,” explaining “We help companies to grow by helping them to raise capital.” But industry insiders are not yet convinced.
According to public records of Goldman’s financial filings, only a tenth of its revenues came from investment banking last year and more than three-fourths from trading for its own account.
In this video, the first in a two part series about unraveling the profit puzzle at Goldman, Economic Correspondent Paul Solman talks to industry insiders and former Goldman executives to find out the real scoop.
Warm Up Questions
1. What do bankers do?
2. What roles to banks play in the United States?
1. How does Goldman make most of its money?
2. What is trading, as opposed to “traditional investment banking”?
3. What is “front-running”? Do you think it’s wrong? Explain your answer with specific examples.4. Do you think the government hasn’t done anything about front-running because: 1: It’s thought not to be illegal; 2: It’s too hard to prosecute; 3: The government is so influenced by contributions from Wall St., it doesn’t want to kill the goose that supports it?
Tooltip of related stories
Tooltip of more video block
Submit Your Student Voice
DOWNLOAD VIDEO Indiana Gov. Mike Pence signed a state bill into law this week that…
Are millennials as racist as past generations? A common answer to that question is “no,” but research shows there’s more to the story. Continue reading
As the Ebola outbreak in Africa hits its one-year anniversary mark, researchers are exploring ways robots could help health care workers care for people who get sick. Continue reading
The collapse of Yemen’s government has raised concerns about the possible effects of a power vacuum in the country and ripples throughout the world. Continue reading
Afghan President Ashraf Ghani’s first official visit to the U.S. underscored a changing relationship between the two countries and an increased focus on security. Continue reading