The Securities and Exchange Commission brought fraud charges against Goldman this month and claimed that the company bet against its own clients and helped create the housing bubble that preceded the worst financial crisis since the Great Depression of the 1930s.
So far, it seems, people are not pleased with Goldman’s performance. Sean Cassidy, president of DKC — formerly Dan Klores Communications — told PRNewser:
I thought Goldman’s performance was absolutely terrible. From what I saw, I don’t think they defended their business practices at all… The executive testimony ranged from ludicrous, occasionally wishy-washy, denials that lacked credibility to an inability to answer seemingly basic questions. Overall they came across like rich guys who got caught.
What really frightens me in all of this is that it didn’t seem like a legal or PR strategy. It seemed like these Goldman executives genuinely had no ability to take a step back and make observations about the system in which they operate.
It is not at all surprising that Goldman is standing their ground on Capitol Hill. They have no choice. At the same time, however, PR needs to be part of their triage mode, working behind the scenes with third party groups and media to provide context around the business of their business. It is likely they have done nothing wrong, but that doesn’t matter. The operative issue here is that the general public, especially media and grandstanding politicians, don’t have a clue as to how the business works.
Goldman Sachs Chairman and CEO Lloyd Blankfein appeared on ‘Good Morning America,’ today, in addition to other TV interviews. PRNewser’s weekly poll asks, “Will Goldman Sachs’ Words Do Anything To Change Your Perception of the Company?” Cast your vote here.