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
The Democratic National Convention wrapped up its third day on Wednesday in Philadelphia with speeches by President Obama, Vice President Joe Biden and former New York City Mayor Michael Bloomberg. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
The Democratic National Convention began on Monday amid protests from supporters of Sen. Bernie Sanders and calls for unity to back Hillary Clinton. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
While Clinton has topped the annual Gallup poll of “most admired woman” each of the last 14 years, a CBS poll last month showed nearly two-thirds of Americans say they don’t think she is honest or trustworthy. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
Born and raised in Queens, New York, to a family of privilege, Donald Trump grew up in a 23-room house and was driven to private school by the family chauffeur. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
Republican presidential nominee Donald Trump chose Indiana Gov. Mike Pence as his vice president, despite the two disagreeing on a number of political and social issues. Pence has served as governor of Indiana since 2012, and a member of the U.S. House of Representatives for 12 years. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld