Goldman sachs customer service controversy Research Paper

Goldman sachs customer service controversy - Research Paper Example Goldman was later on joined by his son-in-law where the firm expanded and grew into a general partnership to become Goldman, Sachs and Company. His son, Henry, was put in charge of the company’s domestic growth and Goldman, being committed to a diversified portfolio noticed a huge potential in a number of other developing industries (McGee 2010). Despite being difficult to market at the beginning these investments soon became profitable ventures only after the firm managed to convince companies to adopt stricter accounting as well as auditing procedures. Goldman, Sachs managed its very first IPO (Initial Public Offering) in the year 1906 when one of its clients, United Cigar Manufacturers announced its intention to expand (Butler 2010). Despite the fact that the Goldman, Sachs hand never managed a share offering in the course of its operation history, it became successful in marketing an estimated $4.5 million worth of the client’s stock and made United Cigar Manufactur ers qualify for trading on the New York Stock Exchange. As explained by McGee (2010) in 1998 Goldman, Sachs began to consider going public and after selling an estimated 69 million shares it officially adopted the name The Goldman Sachs Group Inc. where it named Henry Paulson, Jr. ... Its main clients include governments, private individuals as well as corporations that transact with it. Very few controversies are associated with Goldman Sachs since it was founded. However, the most famous controversy involved the leaking information on inside trading, which was done by David Brown when the company was in takeover talks. This incident happened in 1986 and Robert Freeman, a senior partner of the company was also linked to the controversy. The company has also been accused that last year it boosted its quarter earning through changing substantial writedowns in its December financial reports. This section thus looks in details some of the controversies (Recomparison, 2011). As noted by Butler, (2010) though the company is seen as the most profitable investment bank in the world in addition to being an excellent money-making machine running rings around its rivals while rewarding its high fliers with multibillion-pound bonuses, Goldman Sachs has a tendency of attracti ng controversy to a level separating it from its competitors. The most recent controversy has been in April 2010, regarding betting against a package Goldman Sachs sold to their own investors, which is believed to have been the turning point for regulators not only in the United States but around the world. At that time, the firm was already under scrutiny for having awarded year end bonuses as well as payouts to its stuff for the financial year ending 2008 upon receipt of an estimated ?6.1 billion UK bailout from the United States government, being part of the bailout toward those financial institutions worst hit by the credit crunch. From the controversy, it is said that Goldman Sachs materially gave wrong