What Happened to Goldman Sachs: An Insider's Story of Organizational Drift and Its Unintended Consequences (28 page)

FIGURE E-1

Goldman document listing its commitment to public service

Source
: Goldman Sachs,
www.goldmansachs.com/investor-relations/corporate-governance/corporate-governance-documents/culture.pdf
.

FIGURE E-2

Goldman document showing a timeline of public service projects

Source
: Goldman Sachs,
www.goldmansachs.com/investor-relations/corporate-governance/corporate-governance-documents/culture.pdf
.

The Weinbergs

John L. Weinberg
, with John C. Whitehead, was co-senior partner from 1976 to 1984 and continued to lead the firm after Whitehead retired in 1984, until Weinberg’s own retirement in 1990, capping a forty-year career at the bank. “John L.,” as he was known (to distinguish him from John Whitehead), also served briefly on Goldman’s board of directors following the public offering in 1999. John L. was part of a family dynasty that has been at the firm since 1907. His father was Sidney Weinberg. Jimmy Weinberg was his brother, John S. Weinberg is his son, and Peter Weinberg is his nephew.

John L. Weinberg graduated from Deerfield Academy, Princeton University, and Harvard Business School. During his senior year at Deerfield, he joined the Marines and led troops in the Pacific while still a teenager. After beginning at Goldman, he returned to duty during the Korean War and was promoted to captain before returning to Goldman. He died in 2006.

John S. Weinberg
has been vice chairman of Goldman since June 2006 and has been co-head of Goldman’s investment banking division since December 2002. From January 2002 to December 2002, he was co-head of the investment banking division in the Americas. Before that, he served as co-head of the investment banking services department, beginning in 1997. He was elected partner in 1994. John S. Weinberg graduated from Princeton University, where he was on the tennis team, and from Harvard Business School. His father was John L. Weinberg, and Sidney Weinberg was his grandfather. Jimmy Weinberg was his uncle, and Peter Weinberg is his first cousin.

Peter Weinberg
is a partner in Perella Weinberg Partners LP. Before joining the firm, Peter Weinberg held a number of senior management positions at Goldman, where he was elected partner in 1992. For the last six years of his career there, Weinberg was CEO of Goldman Sachs International. Peter Weinberg spent time at Morgan Stanley before joining Goldman. He received a bachelor’s degree from Claremont McKenna College and an MBA from Harvard Business School. His father was Jimmy Weinberg, and Sidney Weinberg was his grandfather. John L. Weinberg was his uncle, and John S. Weinberg is his first cousin.

Sidney J. Weinberg
led Goldman from 1930 to 1969 and in many ways defined the art of relationship banking on Wall Street. Starting as a janitor’s assistant, Weinberg became partner in 1927 and became head of the firm in 1930, saving it from bankruptcy, and held that position until his death in 1969. He organized the Business and Advisory Council for President Franklin D. Roosevelt. In 1942, he took a leave of absence and entered government service as assistant to the chairman of the War Production Board. John L. Weinberg and Jimmy Weinberg were his sons; John S. Weinberg and Peter Weinberg are his grandsons.

Sidney James (Jimmy) Weinberg, Jr
., joined Goldman’s investment banking department in 1965. He worked as a vice president of the textile division at Owens Corning before joining Goldman. From 1978 to 1988, he ran the firm’s investment banking services department, a unit created by former Goldman co-chairman John C. Whitehead to help manage client relationships and win business. Jimmy Weinberg retired from the general partnership in 1988, when he turned sixty-five. He remained a limited partner until the firm went public and then became a senior director. Jimmy Weinberg graduated from Princeton University and Harvard Business School. He served in the Philippines as a first lieutenant in the US Army during World War II. His father was Sidney Weinberg, and John L. Weinberg was his brother. Peter Weinberg is his son, and John S. Weinberg is his nephew.

Senior Partners (Excluding Weinbergs)

Lloyd Blankfein
joined Goldman’s commodities trading arm, J. Aron & Co., in 1981, as a precious metals salesman in its London office. He has been chairman and CEO of Goldman since June 2006, when Hank Paulson left to become secretary of the Treasury. Blankfein has served as president and COO of Goldman since January 2004. From April 2002 to January 2004, he was a vice chairman of Goldman, with management responsibility for Goldman Sachs’s FICC and equities divisions. He served as co-head of the FICC division after its formation in 1997. From 1994 to 1997, he headed or co-headed the currency and commodities division. The
Financial Times
named Blankfein its 2009 Person of the Year. In January 2010, Blankfein testified before the Financial Crisis Inquiry Commission. He testified before Congress in April 2010 at a hearing of the Senate Permanent Subcommittee on Investigations, denying any wrongdoing by Goldman. His father was a clerk with the US Postal Service; his mother was a receptionist. As a boy, Blankfein worked as a concession vendor at Yankee Stadium. He graduated from Harvard College and Harvard University Law School.

Jon Corzine
joined Goldman in 1975 to become a bond trader. Corzine took over the firm after Steve Friedman suddenly resigned over health concerns and after Goldman had suffered significant trading losses. Corzine was chairman and CEO of Goldman from 1994 to 1999 and oversaw the conversion of Goldman from a private partnership to a publicly traded corporation. In 1999, having lost a power struggle with Hank Paulson, Corzine left the firm to run for the US Senate, representing New Jersey. He served as senator from 2001 to 2005, when he was elected New Jersey governor, serving from 2006 to 2010. In March 2010, Corzine was named chairman and CEO of MF Global, a financial services firm specializing in futures brokerage. The company filed for bankruptcy protection in October 2011, and Corzine resigned in November 2011. Corzine was subpoenaed to appear before a House committee in December 2011 to answer questions regarding money missing from MF Global client accounts. In school, Corzine had been football quarterback and basketball captain. While in college, he enlisted in the US Marine Corps Reserve and served from 1969 to 1975, attaining the rank of sergeant. He graduated from the University of Illinois and University of Chicago Business School.

Stephen (Steve) Friedman
joined Goldman in 1966, helped start the M&A department within investment banking, and became a partner in 1973. In 1984, he ran the fixed income division, together with Bob Rubin. Friedman was vice chairman and co-COO from 1987 to November 1990 with Bob Rubin, and co-senior partner and chairman or senior partner and chairman from 1990 to 1994. Friedman suddenly resigned in 1994 due to health concerns and after Goldman had suffered significant trading losses. He currently serves as chairman of Stone Point Capital. From 1998 to 2002, he served as a senior principal of March & McLennan Capital, an investment arm of the professional services and insurance brokerage firm. From 2002 to 2005, Friedman was assistant to the president for economic policy under President George W. Bush; from 2002 to 2004, he served as director of the National Economic Council. Friedman was on the board of directors of Goldman but resigned in April 2013 when he reached the age limit of 75 years old. In 2009, Friedman resigned as chairman of the Federal Reserve Bank of New York while under criticism for his December 2008 purchase of $3 million in Goldman stock. He graduated from Cornell University, where he was on the wrestling team, and Columbia University Law School.

Gus Levy
joined Goldman in 1933 to head the then one-man trading department. Between 1933 and 1969, Levy headed Goldman’s trading department and pioneered new trading strategies. He was senior partner from 1969, succeeding Sidney Weinberg, until his death in 1976. It was thought that, because he was from the trading department, Levy was not naturally banking oriented. According to stories, when he was about to retire in 1969, the highly banking-oriented Sidney Weinberg had reservations about leaving Levy in charge. Ultimately, he appointed Levy as senior partner but also introduced an eight-man management committee composed of seven older, experienced senior banking partners to “supervise” Levy. Gus Levy is credited with coining the phrase “long-term greedy” to describe Goldman’s philosophy.

Henry (Hank) Paulson Jr
., joined Goldman in 1974, working in the firm’s Chicago office, after having worked in the Nixon White House. Paulson became a partner in 1982. From 1983 until 1988, Paulson led the investment-banking group for the Midwest region and became managing partner of the Chicago office in 1988. From 1990 to November 1994, he was co-head of investment banking, then served as COO from December 1994 to June 1998, and eventually succeeded Jon Corzine as chairman and CEO. Paulson pushed Goldman’s growth into Asia and into principal investing activities. In 2006, Paulson resigned from Goldman to become secretary of the Treasury for President George W. Bush.
Time
magazine named Paulson runner-up for its 2008 Person of the Year. After leaving his role as Treasury secretary, Paulson spent a year at the Paul H. Nitze School of Advanced International Studies at Johns Hopkins as a distinguished visiting fellow. He is a senior fellow at the University of Chicago’s Harris School of Public Policy. In school Paulson was on the wrestling and football teams. He graduated from Dartmouth College and Harvard Business School. He is author of
On the Brink: Inside the Race to Stop the Collapse of the Global Financial System
(2010).

Robert (Bob) Rubin
joined Goldman in 1966 as an associate in the risk arbitrage department in the equities division, a proprietary investing area. He became a general partner in 1971 and joined the management committee in 1980. Rubin ran the J. Aron commodities trading business in the early 1980s. He ran the fixed income division with Steve Friedman in 1984. Rubin was vice chairman and co-COO with Steve Friedman from 1987 to 1990. From the end of 1990 to 1992, Rubin served as co-chairman and co-senior partner along with Steve Friedman. Then Rubin resigned to serve in the White House as assistant to the president for economic policy under President Clinton. Rubin served as secretary of the Treasury during the first and second Clinton administrations. In 1999, he became a director on the board, chairman of the executive committee, senior adviser, and member of the office of the chairman of Citigroup, where he performed advisory and representational roles for the firm. In 2009, he left Citigroup while under criticism that he should have recognized and acted on the extreme circumstances faced by the financial system and Citigroup. Rubin is currently engaged actively as a founder of The Hamilton Project, an economic policy think tank that produces research and proposals for creating a growing economy that benefits more Americans. He is co-chairman of the Council on Foreign Relations and sits on the board of the Harvard Corporation, Harvard University’s executive board. He was a member of Boy Scout Troop 35, sponsored by the American Legion, and received the rank of Eagle Scout. In 1960, Rubin graduated from Harvard College and Yale Law School. He is coauthor, with Jacob Weisberg, of
In an Uncertain World: Tough Choices from Wall Street to Washington
(2003).

John C. Whitehead
joined Goldman in 1947. He was co-senior partner with John L. Weinberg from 1976 to 1984, succeeding Gus Levy after Levy died. Whitehead codified Goldman’s principles in 1979. He also set up the investment banking services department to help manage client relationships, win business, and reduce the firm’s reliance on any one individual. Both were innovations for Wall Street. He helped focus the firm on international growth. He retired in 1984 to serve as deputy secretary of state, under George Shultz, in the Ronald Reagan administration, from 1985 to 1989. Whitehead is currently a board member of the World Trade Center Memorial Foundation and, until his resignation in May 2006, was chairman of the Lower Manhattan Development Corporation. Whitehead graduated from Haverford College and Harvard Business School and is author of
A Life in Leadership: From D-Day to Ground Zero: An Autobiography
(2005).

Selected Current/Recently Retired Executives

Gary Cohn
has been president and COO (or co-COO) and on the board of directors of Goldman since June 2006. From December 2003 to June 2006, he was co-head of global securities businesses, having been co-head of FICC since September 2002. Before that, he served as co-COO of FICC after having been responsible for commodities and a number of other FICC businesses from 1999 to 2002. Cohn was head of commodities from 1996 to 1999. In 1990, Cohn was hired by Goldman Sachs’s J. Aron & Co. unit as a metals trader which traded commodities and currencies; he traded silver. Lloyd Blankfein became co-head of J. Aron in 1994, and two years later he tapped Cohn as global head of the commodities businesses. Cohn graduated from American University.

J. Michael Evans
has been global head of growth markets since January 2011, a vice chairman of Goldman since February 2008, and chairman of Goldman Sachs Asia Pacific since 2004. Before becoming a vice chairman, he had served as global co-head of Goldman’s securities business since 2003. Previously, he had been co-head of the equities division. Evans joined Goldman in 1993, from Salomon Brothers, as head of equity capital markets in London. He was named a Goldman partner in 1994, and he became head of the business standards committee. Evans was part of the Canadian Olympic team in 1984 and won a gold medal in eight-man rowing crew. Evans graduated from Princeton in 1981 and attended Oxford University from 1982 to 1984 for his graduate studies.

Harvey M. Schwartz
has been the chief financial officer of Goldman since January 2013. From 2008 to 2013, he was global co-head of the securities division. From 2005 to 2008 he was involved in executive sales positions in the securities division. From 2004 to 2005, he was co-head of the Americas Financing Group. He started at Goldman’s J. Aron & Co. unit in 1997 as a gold salesman. Prior to Goldman, he worked at J.B. Hanauer & Co, First Interregional Equity Corp., and Citicorp. He graduated from Rutgers in 1987 and Columbia University Business School in 1996.

David A. Viniar
had been the chief financial officer of Goldman from 1999 until January 2013. Viniar was also head of the operations, technology, finance, and services division. He was a member of the management, firmwide risk, finance, firmwide capital, and principal investment committees. From 1998 until 1999, Viniar was deputy CFO. He assumed responsibility for the firm’s financing activities in the treasury department in 1992 and for the controllers department in 1994. Before that, he was a member of the structured finance department of the investment banking division. He joined Goldman’s investment banking area in 1980 and became a partner in 1992. He graduated from Union College, where he played basketball, and from Harvard Business School.