Calls by UK and European public officials to ban Goldman Sachs from arranging deals for governments remove any remaining doubt that reputation risk is circling ever closer to the sales prospects and livelihoods of Goldman employees.
The Wall Street Journal reports Wednesday:
Goldman Sachs Group Inc. is in danger of losing business with a key group of clients as a result of the fraud allegations it faces: governments in Europe and the U.S.
Politicians in the U.K. and Germany are starting to call on their governments to cut ties with Goldman, which has long been one of the top financial advisers to European policy makers.
Besides ranking among the top primary dealers for government bond sales in the UK, Germany and a number of other European countries, Goldman often advises governments on sales of state-owned assets.
In the U.S., it's been reported that Goldman's reputational issues - even before the SEC case arose - figured in the Treasury's decision to choose rival Morgan Stanley to oversee the sale of $32 billion of Citigroup shares the government obtained as a result of bailing out that institution.
A Backlash in Europe Has Politicians Calling for a Goldman Ban [WSJ]
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