[kenavi]

Lewis is simply saying that the publicly-held corporation's only responsibility is to get its CURRENT shareholders the most return possible. Even if it means TOMORROW's shareholders will find themselves screwed, from the consequences of actions taken today.

Musical chairs governance.

How best to debunk this?

[Alberta's Child]

I think he's on to something. He isn't commenting on GS in terms of a "profit" vs. "non-profit" corporation, but on their status as a publicly-held corporation rather than a partnership.

In his classic book, Liar's Poker (I would recommend this book to anyone with even a mild interest in economics and politics, since his stories from the bond industry in the 1980s are still relevant today), Lewis traces the ultimate demise of Salomon Brothers (his employer) to the moment the partners of the firm decided to sell the partnership and become a publicly-traded company. His point was that the business model changed completely from that point forward, and he actually saw his own hiring as a sign that the company was focused on unsustainable short-term growth rather than on hiring competent people. LOL.

[SeekAndFind]

RE: Lewis is simply saying that the publicly-held corporation’s only responsibility is to get its CURRENT shareholders the most return possible. Even if it means TOMORROW’s shareholders will find themselves screwed, from the consequences of actions taken today.

---

He might as well describe a lot of America’s corporations nowadays, not just Goldman.

CEOs are mostly interested in short term gains (because a lot of them want to profit and get their bonuses NOW). Who cares what happens several years from now ? I ( me the CEO) might not even be around then.

One thing that America will always have a dearth of as a result of this mentality is COMPANY LOYALTY.

[richardtavor]

Consider the idiotic source.