sachs the understand fully that goldman sachs is going to compete with them they're going to goldman sachs is going to probably trade on their inside information they understand this but there's no choice there's nobody willing to do with goldman sachs does which ultimately frankly isn't potentially good for goldman sachs but it's very bad for the rest of us it's very bad for our capital market system it's very bad for capitalism and you know i've been writing about this for years and how they should change and nobody is listen to me now maybe this will get people goldman sachs to wake up but frankly in lloyd blankfein as one page letter response today i didn't get the sense that there's any contrition anything that they're willing to change in what they've done and so i don't see much changing and i don't see the clients being in a position to force them to change no now from that response by definitely didn't seem like he was sorry at all or felt bad if anything they just tried to maybe not smear a greg smith but demote him to some low level employee that really didn't matter but y

i hate to say it it's because remember goldman used to be the firm with a good reputation so goldman has basically as much as i read goldman does it that's an acknowledgement that everybody else does have to and you know it and golden does some things like i hate to say it to have guys there four o'clock on friday in the summer you know if you want to believe cork off on friday the summer they'll be going guy on the desk to take your bit and they're very big and very big in prime brokerage they're going to a lot of hedge funds to do business with them because there aren't that many firms that have the back office and the processes to be and will lend the money that's another big part of the prime brokerage business is providing credit so particularly hedge funds don't have that many you know firms that are perceived to be good at crime brokerage that can go to and then for institutions despite all this information coming out goldman is still one of the i.b.m. you know they use you know their very powerful network effects in trading markets and so that you people want to go with the f

>> goldman getting gored, goldman sachs exec claims they put making money first, clients second. how big a hit is wall street and goldman's reputation going to take? >>> plus, all in on apple, morgan stanley raises its price target and not just by a little bit, dividend funds are buying shares, dividend funds! apple doesn't even pay one. should you chase this stock or wait for a pullback? >> michelle ka rules so cabrera with tyler mathisen, "power lunch" begins right now. >>> welcome back, michelle, that's the first point of the day. how about that? markets taking a little bit of a breather today, the nasdaq is higher but the subpoena down a half a point, the industrials up a little bit. stocks consolidating basically as averages hit the new milestones and here's where we stand up to the minute. the dow very comfortably above 13,000 at 13,195. and s&p is speaking up at 1400, even though it's down a big half point at this midway point of the day. but nasdaq solidly above 3000 as we just mentioned, first time it's at that level since 2000. 3000 for 2000. the dollar strong on the be

has something changed at goldman? has the culture changed as greg smith wrote about in the oped piece today? >> well, you raise an interesting point n. my book, i pointed out how goldman has strong values. like putteding the client first, and hiring brilliant people who are good team players. they have four team values they feature prom nenltly on their website. and the big thing when lloyd blankfine became ceo, during that time the stock price fell 20% interestingly enough. he is a trader. and he bring that is trading mentality to the firm. the trading mentality is very, very short term. it doesn't stress having relationships with ceos. if, on the other hand, before 2006, there was a better balance between trading and investment banking and investment banking involves establishing relationships with ceos over the long term where they're kind of behavior that goldman has demonstrated, most prominently in 2007 would not have been available. soox*uds we have a half minute left. i topt ask you this. what's the fallout fr

goldman has responded.hey have sent a letter out to their employees in a company our size it's not shocking that some people feel disgruntled. well, of course, disgruntled employee. we're terrific to our clients and employees. then they wrote across the firm at all levels 89% of you said that the firm provides exceptional services to them. if the employees want to keep collecting millions of dollars in paychecks said that we're great we must be great. 89% of you said it. it's not surprising that goldman sachs wants to strike out against greg smith, but what's interesting is how the media has reacted to that. let's do media watch. all right. first we start with fox news. of course fox news does not like it when you attack the banks or tell the truth about it. no, they got to fight back in favor of goldman sachs. let's watch. >> there is a degree of celebration. you have ten years as vice president, and you don't make mv you're going to be mad. your bonuses are capped. >> right. >> he probably didn't make a g

sachs according to greg smith's op ed and more goldman alum who have come forward about the firm's buffett customers will give you the round up . as a new round of staff cuts a cold men are god's latest work let's get to today's capital account. as you heard me say federal reserve chairman ben bernanke he began his college lecture series today he spoke to undergraduate students at george washington university right here in d.c. becoming the first fed chairman ever to help teach a college course now eighty students apply wrote as they really wanted to be a part of this to become indoctrinated and why the federal reserve is important i would argue let's highlight a few of his powerpoint lessons since we listened and watched his lecture attentively so here's where he's talking about the fed being the lender of last resort he says the qualities there are that they lend freely against good assets at o'connel too great to discourage excessive use honey ok so that's what he told those students that's funny though because we thought the federal reserve has done and you think but lend against good

and with goldman, it's especially troublesome because goldman had its famous 14 basic principles of business. principle number one was the.... >> woodruff: let me just stop you there and i want to pick up on your first basic point and turn to jim angel. just on this essential criticism from greg smith in that piece yesterday that the moral fiber as deteriorated. >> there have always been conflicts of interests in financial markets and charges of these conflicts are really not new even at goldman sachs, whether it was the i.p.o. spinning scandal of the late '90s or the excesses of the 1920s. if you go back in financial history, you'll see that there have been plenty of these kind of allegations. >> woodruff: what about goldman itself? he makes terrible charges. he talks about a toxic atmosphere focused only on profits at the expense of what's in the client's best interest. >> and unfortunately you can make the same charge against many businesses. >> woodruff: so you're saying there's either nothing to these chargings or everybody does it. >> i'm saying it's commonly widespread. on the one han

and why i bought goldman sachs. it's how dan made 60% in goldman in just one month. so what's his plan for making more? the action begins right now. >>> live from the nasdaq market site, the world's largest options exchange, i'm in for melissa lee. these are the traders in times square. we want to talk march madness about the numbers. s&p over 1300. nasdaq over 3,000. but there is only one number we're watching. that's 600. that's what apple touched this week. what does this mean for the market? let's get in the money to find out. i mean, that's the craziest thing here is the market wouldn't be up as much as it is up without apple. you've got to talk about it. >> it's absolutely amazing. talk about the largest market cap. dan was saying earlier nobody cares about the whole numbers and the s&p or the whole numbers in the dow. they only care about the whole numbers in apple. 300, 400, 500, and now 600. the truth is this is not just about apple, options, stock. it's really about america and how america is doing. if you take a look -- if we stop looking at apple for one

i saw one goldman sachs, the goldman sachs he talks about is a different goldman sachs.u may say about greg smith, his views are not unique. this is what people have been saying privately for years, he just said it publicly. i heard it near goldman bankers and clients particularly at hedge funds for years. >> there's a history, public history, the mortgage package they put together, lousy paper, they sold it to clients, what they wound up paying $500 million fine from the s.e.c. and you know, the fact that blankfein had to issue that statement today, tell me that this greg smith drew blood. >> of course he did. this couldn't come at a worse time for goldman sachs not only on the heels of the questions of their practices during the mortgage boom that you mentioned, but right on the heels about criticism of the multiple conflict goals that goldman played in the recent kinder morgan el paso deal. it's opening a wound that doesn't even have a scab on it yet. >> bethany maclaine, just from your reporting or maybe your intuition, do you think that lloyd blankfein is on his way

will it change goldman? is already changing but it doesn't matter what we think, it matters what the clients think. and that has always been the most important thing for goldman, what its clients think. >> they have never had a rush limbaugh moment where clients have dropped them in droves. >> no. >> richard quest is the head of cnn's "quest means business." richard, i want to read you a quick excerpt from a letter that was quickly sent to goldman employees from ceo lloyd blankfein and gary cohn. we are far from perfect but where the firm has seen a problem, we have responded to it seriously and substantively and we have demonstrated that fact. to the outside world, goldman sachs has long stood for unapologetically making money. i have to wonder about this greg smith who wrote this op-ed, was he living under a rock? >> no. there are two very distinct views that have come out this week. there are the big, bad goldman and the place should be turned into a not-for-profit charity and do good works in the communi

but the fact that our publicly subsidized them backed banks like goldman sachs and j.p. morgan take these guys seriously you know obviously the cia you can see in the e-mails treat these guys as a joke that you know these guys think they're like super high tech spies for googling perhaps or drinking a martini shaken not stirred while googling and that's what they think is like our spy is but one member of the in the case of wall street who buys the research these are the these are the wall street banks to get bailed out by the taxpayer exactly so the taxpayer get bailed out of goldman sachs or without without the largest of of warren buffett of the taxpayer an insider crony information dollar sized went bankrupt or reading but because of all the money that's through now they can use those money their money to buy worthless research but the fact of it doesn't mean anything as worthless as a motorist their money that they're spending their spending our money as you see in this next seven massive insider secret dealings scheme with strat for injury sacks maybe so the e-mail

this isn't goldman's dna. nothing particularly new going on in the last few years. >> what about the argument something has really changed since roughly, say, 1999? there has been an uptick in the degree of it which is what many people would say, it is much worse now even though it has never been perfect. >> i would say it is probably worse. when you have easy access to capital all sorts of mischief can take place that couldn't take place before when you had limits on capital. john white had the greatest -- partner of goldman sachs. for many years is 90 and doing well. used to say it was better for goldman sachs to not go public and have limited capital, have to make tough choices about the way interest spends money in in this era where they have unlimited capital, get their money for free, play all day long with other people's money. >> you were on wall street for theup in the bubble. when the crash came did you detect a change there that maybe it has gone away? were people sort of able to somehow rationalize

why should average americans care about goldman's practices? >> when goldman or any other investment bank put their interests first, that means there is less for the pension fund, less for retirement investment accounts. you have less money to retire on and less money for college educations. >> reporter: goldman sachs vigorously disputes these charges. in an internal e-mail suggests he is disgruntled. the firm insists it has legions of satisfied clients and says its guiding principle, "we will only be successful if our clients are successful." >> lisa myers starting us off tonight. thanks. >>> british prime minister david cameron's in washington tonight for a state dinner, following some quality time, relationship building with president obama, that included the ncaa basketball game in ohio last night. today it was on to serious issues, including the war in afghanistan in the wake of the civilian murders, the rampage. we have two reports beginning with nbc's kristen welker at the white house. kristen, good evening. >> reporter: good evening, br

and the obviously bruised goldman sachs is firing back. that's all coming up we always hear about jobs leaving america. here's a chance to create jobs in america. oil sands projects, like kearl, and the keystone pipeline will provide secure and reliable energy to the united states. over the coming years, projects like these could create more than half a million jobs in the us alone. from the canadian border, through the mid west, to the gulf coast. benefiting hundreds of thousands of families throughout the country. this is just what our economy needs right now. double your data. 4 gigabytes for just $30 a month. with 4 gigabytes, you could send and receive over 400,000 emails. or stream over 1,100 songs. or use gps navigation for 34 continuous days. all the data you need to power your favorite apps. 4 gigabytes for $30. only on america's largest 4g lte network. now buy one samsung stratosphere for $99.99, get another one free. verizon. >> greta: is president obama going hollywood? well, sort of. tomorrow, the president's campaign will rel

called a blood sucking vampire squid toxic destructive and to crack it's a fail and now a former goldman sachs employee is spilling the beans about his former employer and an op ed piece yes the business practices are legal but are goldman sachs executives morally bankrupt i'll explore. so we know that mitt romney rick santorum they are part of this two min race here for this republican race apparently is going on but is mitt romney tries desperately behind the scenes to end it but wait a minute isn't someone missing from the republican primary coverage and media outlets certainly aren't the only ones on the plug on ron paul so why is the establishment so afraid of this dark horse and how low are they willing to go to kill his campaign. if you like we are living it in your words your government and it's awful because at least i'm pleased is like the middle east you know. you do know that you're living in a dictatorship you know the earlier we can hear the words you know like. quick to criticize others and even quicker to arrest its own dissidents the u.s. government sure doesn't practice

called of blood sucking vampire squid a toxic destructive and to crack it to fail and now a former goldman sachs employee is spilling the beans about his former employer in an op ed piece yes the business practices are legal but are goldman sachs executives morally bankrupt well explored. so we know that mitt romney rick santorum they are part of this two man race there for this republican race apparently is going on that is mitt romney tries desperately behind the scenes to end it. it's a three way race to the finish or so the mainstream media and the establishment what have you believe a ron paul is still calling in the crowds and the vote so what's with the media blackout. and feel like we're living in that we're hearing government hospital because at least in places like the middle east you know they you know that you're living in a dictatorship you know that you're living in its origin or you know like rich. and yet there's the land of the free might only be intended for those who are brave enough to be arrested while exercising their first amendment rights journalist david seaman wil

sachs why i'm leaving goldman sachs this is the viral video of this week the coney twenty twelve of this week greg smith goldman sachs executive director and head of the firm's united states equity derivatives business in europe the middle east and africa who spent twelve years at the firm is now wrote a letter he resigned what a letter to the new york times explaining why he's resigning and said that the company is toxic and destructive and he said what are the three quick ways to become a leader of goldman sachs a execute on the firm's axes which is goldman speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit be hunt elephants in english get your clients some of whom are sophisticated and some of who aren't to trade whatever will bring the biggest profit to goldman or c find yourself sitting in a seat where your job is to trade any illiquid opaque product with a three letter acronym right well take the lead author of the first idea around the axis of the product li

sachs -- the goldman sachs folks would be quite happy to see that happen.to them if they have that happen. that's $15 on the price of filling up your tank if you have a pickup truck. so goldman sachs's got a lot at stake basically to go back to the future which is what got us in this so much trouble. the bottom line here -- >> but let's be fair, mr. welsh, you and i know that democrats have already received money over the years from goldman sachs, indeed the president's 2008 campaign was not shy whether it came to receiving donations from that very bank. >> you are absolutely right. in fact, democrats played a significant role and it was under bill clinton that we got rid of glass stiegel. we broke down the walls between investment banks and commercial banks. so, yes, democrats were complicit in this. and we've got to do better ourselves. but bottom line, what we have to incent is the model of main street banks where their relationship to their clients is one of partners and advisors rather than predators. >> indeed. congressman peter welsh, thank you for b

goldman sachs has endured a lot of negative pr and the anti-goldman sachs forces had to have a spokespersoni. jamming into anything that smells like money. he really said this. did anything in the resignation letter surprise you? >> no, it did not. it was also in the levin report. >> it came after the hearings on capitol hill, the subpoenas of the fabulous fab. >> right. >> and lloyd blankfein, very heated reports. >> and those hearings and that report was entirely what smith was talking about, which was that goldman was selling out its own clients and they den grated them when smith talked about money, in the levin report they were trying to unload limberwolf and they said we found a flying pig and white unicorn all at once. >> this is when goldman would make fun of clients when they took advantage of them? >> yes. what is different is that this was somebody from the company coming out with this information. >> goldman has a huge settlement with the s.e. krrk, right? >>. >> even the levin reports talked about other deals. >> all right. hang on all of you. if they are so dreadful and they a

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