Editor's Take: Goldman's grief won't put off APAC candidates

As we all know, all is not well at Goldman Sachs. The firm faces civil charges from the Securities and Exchange Commission that it misled investors in a collateralised debt obligation three years ago, allegations it describes as "completely unfounded both in law and fact".

The overseas media continues to speculate about how bad things will get for Goldman in terms of its share price, reputation and ability to win clients. There's also the issue of whether the firm will settle soon (potentially letting its shares rebound), or see the SEC in court (it may well win, but the proceedings would drag on for months).

Here in Asia Pacific, however, the Goldman v regulator battle does not look likely to affect the firm's ability to attract the best bankers. "To be honest, I'm not too bothered. Goldman has such a high profile across many areas of investment banking in this region," one recruiter told me recently.

Another added: "The effect will be minimal as Goldman's branding is very strong in Asia Pacific. In any case, it's a civil lawsuit not criminal, so it's unlikely to have any major impact. GS will just pay some sort of out-of-court settlement. Small change to keep the government happy."

As a rule, pragmatic candidates in Asia Pacific are only put off joining foreign banks which are receiving financial life support. This potential court case won't turn Goldman, which this week announced better-than-expected first-quarter earnings of US$3.5bn, into an RBS.

But while Goldman's bottom line is still strong, what about its reputation? Much has been made of the reputational damage the SEC charges have already inflicted on Goldman in the US and Europe. "Last year in Asia Pacific, reputational impact made it hard for certain banks to recruit, UBS for example. But I don't see this as nearly as damaging for Goldman," says the first headhunter.

In a region whose domestic banks largely don't offer as well-remunerated careers paths as Goldman, the US firm is admired by most aspiring candidates because it emerged so strongly from the GFC. Goldman will continue to play hiring hardball this year, dishing up guarantees and counter offers to compete with its rivals.