We we are left gray by froth from markets

A seller of cars with brakes overwhelmed "In the mouth of the President of the Commission on the financial crisis, Phillip Angelides - former Treasurer of the State of California, beaten by Arnold Schwarzenegger in the last election to the post of Governor in 2006-, the expression is anything but a compliment. But with the fire of the members of the parliamentary commission this January 13, 2010, the CEO of Goldman Sachs, Lloyd Blankfein, who comes from an oath to the sides of its three "brothers" James Dimon (JPMorgan Chase pattern), John Mack (Morgan Stanley) and Brian Moynihan (Bank of America), is not disassembled. Contrite or off. The man best paid Wall Street, already waived his bonus in 2008, does not have to be ashamed of his reputation as a "vendor of elite". It doesn't feel neither guilty nor responsible. Unlike other large retail banks such as Citigroup or Bank of America, Goldman Sachs deals with "sophisticated" investors, in the complexity of financial products, calls the "suspect n 1" Wall Street.

"We we are left gray by froth from markets (...)." "We have given to a self-satisfaction that, after these events, not happen again in my lifetime", he just acknowledged to the Capitol. The CEO of Goldman Sachs go no further in the mea culpa. Hand alert and talkative flow, former dealer of precious metals "sells" very well the disclaimer in the crisis. With the smile and the serenity of the professional seasoned. With also a clincher: "our customers are professional investors who know where they put their nose." Clearly, a firm like Lehman Brothers knew very well that Goldman purchased in his own name and took positions on the markets. Four Wall Street bankers placed on the grill of the elected members of Congress, it is the most comfortable and the more combative. The difference of the CEO of JPMorgan Chase, Jamie Dimon, visibly irritated to be there, it seems almost fun to be justified. Hard to imagine that this jovial man laughing eyes is the head of this "Octopus vampire" "rolling stone" magazine has stigmatized in his famous article of July 2009 on "The great American machine to make bubbles" ().

Seller of gold then trader

Contrary to a well-established legend, Lloyd Blankfein, fifty-five years, has not started his career as "trader", but as a seller of gold. Descendant of immigrants from Eastern Europe, his father was employed by the postal sorting in the Bronx. His mother was receptionist with a manufacturer of alarms, "an activity growing in my neighbourhood", likes to remind the child of Brooklyn. At sixteen, he gets a Harvard student scholarship, where he spent his "juris doctor" degree in 1978. After starting as a tax lawyer in Donovan, Leisure, Newton & Irvine, a California law firm, he sees his candidacy rejected by the prestigious Bank of Goldman Sachs business in 1981. That is important! It will enter through the door from behind, joining the firm of trading of materials first j. Aron & Co, taken by Goldman in the same year. It is is specialized in trading gold. With a strong sense of humour, it fun to see gloser on his legendary reputation as a "trader". "In reality, it has never been a trader but excellent seller of gold, although he has led teams of traders", corrects his entourage.

In j. Aron, it will cross a certain Gary Cohn (the current number two of the firm) will obtain the license to treat physical commodity in the early 1990, and will address the trading of aluminum at the point where the results of Pechiney will plunge into the red in 1994. The same year, Lloyd Blankfein is appointed at the head of the subsidiary and will be quickly promoted in 2002, at the head of all trading and "trading" activities which represent 80 of the profits of the Bank. Two years later, radical change: he shaves his beard, abandons his red braces, and lost 25 pounds to become the arm right of Henry Paulson, appointed at the head of Goldman Sachs after the departures of John Thain and John Thornton. With its appetite for risk, it will contribute to triple the value of the title of the Bank since its IPO in 1999. Nothing hinders the rise of this gifted of trading marked by Mark Winkelman, former boss of the "fixed income", for his intelligence and diplomacy. After the appointment of Hank Paulson as Secretary to the Treasury of George w. Bush, Lloyd Blankfein became CEO of the firm in 2006.

Supporter of a culture of risk

"Unlike a Paulson, he is before all a salesman, opposite a traditional banker," explains a framework for the Bank. In reality, the two men are as different as possible. Although "Lloyd has great respect for Hank," recognizes his entourage, the two men come from separate universe. While Henry Paulson comes from the Investment Bank, Lloyd Blankfein comes from the "trading" and the foreign exchange. The first is a Republican, while the second appears as democratic by first supporting John Kerry, candidate with George w. Bush in 2004, then Hillary Clinton four years later. Especially, since his appointment, Lloyd Blankfein, regarded as one of the three most influential by "Fortune" businessmen in 2007, behind Rupert Murdoch and Steve Jobs, is considered a "risk taker", advocating a "more aggressive" risk culture, well than controlled.

What accentuate the image of "profiteer of crisis" which glue today at the American Bank since the rescue of AIG's, which was the main client, after acquiring 20 billion of credit default swaps (CDS) in 2005... "Blankfein has been very rapid turn back: he did ensure that Goldman liquid positions on toxic products and maintain its ("hedge") position on AIG.". "At the time, Goldman Sachs has been the main beneficiary of the rescue of AIG," provides a New York banker. The idea that the former Secretary to the Treasury, Hank Paulson, could give a "helping hand" decisive for his former right arm on AIG disrupts some of its competitors. "Goldman is not in the sense of history." "They have a way to taunt the market and the taxpayer can only penalize at the time when the unemployment rate is 10," said the boss of a New York Bank, under the seal of anonymity. It does not criticize aloud the "elite corps" of Wall Street, who has widely spread to Treasury.

Compensation: $ 68.5 million

The small sentence by the President of the FCIC on 'sellers of cars to wreck brakes take policies of insurance on the buyers' did fly. The image of "seller of elite" Lloyd Blankfein could out bruised this parliamentary investigation, even if his relatives consider it primarily as a "hunt for witches to the Gallery". In contrition, the boss of Goldman Sachs has already waived any bonus for 2008, after collecting a record payment of $ 68.5 million (including a 67.9 million bonus and his fixed salary of 600,000 dollars) the previous year. In addition, since the entry of Billionaire Warren Buffett in the capital of Goldman in October 2008, Lloyd Blankfein, the President of the firm, Gary Cohn, the CFO David Viniar and the former co-chair, Jon Winkleried pledged to retain 90 of their titles locked until October 1, 2011. But his sense of understatement he still sometimes plays towers. Last November, it was thus dropped at the end of an interview to the "Sunday Times": "I am just a banker doing a work of God." A "simple expression!" pleaded his entourage. The "Sunday Times" was made at the foot of the letter showed Lloyd Blankfein to a small Halo on London buses. One thing is certain: Unlike its predecessors, Robert Rubin and Hank Paulson, it is unlikely that Lloyd Blankfein outstrips Secretary of the Treasury. The firm long nicknamed "government sachs" will have to play low profile, at least for a time. "Serve the Government was seen as a virtue, now we discover that it is a vice", said his entourage.

Unrepentant arsonist or great clearance Passionate about history and books on the collapse of the ottoman Empire, Lloyd Blankfein will in any case have to remove his image of "war profiteer" to defuse the criticism. With Warren Buffett, he has already announced a Fund of 500 million for small business. He also sits on the Board of the Robin Hood Foundation, in the great tradition of the philosophy of "The firm" since its creation in 1885: creation of wealth for its clients and partners ("managing directors"), but step (or little) conspicuous sign and philanthropy is strongly encouraged. In fact, the boss of Goldman Sachs is known for boilerplate further costumes, even if this does not prevent it to share the same address as the former boss of Citigroup, Sandy Weill, and rock star Sting, on Central Park West.

To better turn the page, Goldman Sachs will also leave its current 85 Broad Street to be closer to head from Ground Zero. The project received $ 1 billion of "Liberty Bonds", tax-free bonds following the attacks of September 11, 2001 to assist in the reconstruction. Yet an opportunity that Lloyd Blankfein has seized at the right time.