and then, i leave the meeting and the partner from goldman sachs who i was with is jubilant. s. the client is going to keep doing business with us because they have to." >> cooper: in 2011, smith moved to goldman's london office, the very month the company announced a wide-ranging effort to improve its business practices. smith saw little change. he say's his co-workers in london repeatedly referred to their clients as "muppets"... >> ♪ the rainbow connection... >> cooper: ...and not in the kind-hearted way their "sesame street" creators intended. >> ♪ the dreamers and me. >> smith: in europe, a "muppet" is a term for someone you can manipulate, someone who is an idiot. >> cooper: so people at goldman sachs, who you worked with, used to call their clients idiots, essentially? >> smith: all... all the time. not to their face, but behind their back. >> cooper: you heard people you work with talk about overcharging clients, bragging about it? >> smith: within week one, i met a junior guy who was 24 or 25 years old, and the first thing he told me was he'd just traded a sophisticat

one of sort of the hottest inside business stories lately has been a about goldman sachs and the booksiders. quote toxic and destructive, those are the words my next guest uses to describe the culture of goldman. goldman insider greg smith tore apart the company's ethics and questioned its integrity when he sent his resignation letter as an op-ed in the new york times. it sparked the curiosity of millions and led to his tell-all book "why i left goldman sachs" and the op-ed was called why i'm leaving goldman sachs. joining me now is greg smith. that was the heck of an exit e-mail. they usually say hey here's my new e-mail to find me. yours was a gigantic punch in the nose attempt at goldman sachs. here's this book, i have to tell you, i have been reading it. i'm not entirely through wit -- through with it, i'm several hundred pages in it. leading up to it, i'm thinking this is a great place to work the way you're describing goldman. what was the switch that flipped where you turned around and said i can't be here anymore? >> yeah, well, let me say, when i was in college 12 years ago,

than goldman sachs. in a lot of ways, this stock has had an amazing run back up from -- it was below 100 a couple of months ago. i would expect consolidation here. i think, again, like we said about jpmorgan, there's a lot of good news in a short period of time. let's not forget we are seeing rotation in other sectors. winners, we were talking about on fast last night some of the things that contributed a great deal of performance to a lot of portfolio managers. and individual investors. these stocks are up a lot. goldman sachs is up 33% year to date. if you are nervous about potential head winds in november with the elections and that sort of thing it may make sense. what we are seeing today is taking profits. >> financials are up about 20%. certainly one of the big winners so far this year. dan is putting a put calendar on goldman. we don't use this strategy a lot. we crack open the play book. in the strategy we sell the near dated put and use it to buy a longer dated put. you want the stock to be abov

to support his claims but that he appeared frustrated about his career and future prospects at goldman sachshow accurate is your memoir? goldman is saying your motivations are different, that you weren't being paid enough. >> first thing you have to ask yourself is by goldman attacking me as hard as they are and not addressing the issues raised you have to ask yourself is there something they don't want coming out? i saw someone quoted saying gold mavn was relieved by what is in my book. i would say to you, maybe people on wall street feelt feel that way. but i guarantee people outside of wall street who read this book they won't find things like ripping up pension funds or betting against your clients or 'ole selling one that people don't understand will not be pleased and will find it egregious. look at what the market is telling you and where stockholders are valueing jpmorgan, goldman sachs, a lot of them are below lick kwi dags. even investors don't like this business model. >> after you resigned and hit the send button, did you feel any moment of oh, my god, what did i do? >> i actuall

that's why you go to goldman sachs.ght. i mean, and to think it's anything different than that, or has been anything different than that, over its, you know, 250-year history is just nonsensical. >> we never hear from ex-goldman people who tell us how the day-to-day of goldman life is very rare. your book was very rare and a good insight. there are few other places where we learn about how the kingmaker of a company works. that's what i think is so interesting. >> yes. >> about this guy in this book. we're really hearing from kind of an average foot soldier in a very important company. >> if he had left it at that, if he had left it at that and said here's what it's like inside goldman sachs that would have been great. there was a book in 2001 called monkey business about what it was like inside another wall street firm but greg smith made it into a morality tale and i'm afraid that greg smith does not have the moral standing to pull this off. he's a frustrated ex-employee and he now wants to make it into something else

this stuff came from goldman sachs. think about it from goldman sachs' perspective. was blindsided. this never happens on wall street. people resign all the time. 3% and 5% of goldman's employees leave of their own accord, in other words not fired, every year. none of them write an op-ed in "the new york times." disavowing more or less everything that they did at the firm, discrediting the firm. in a most public fashion possible. perhaps no surprise that goldman wanted to tell a bit of its side of the story and shared with us some internal documents, the conclusions, the results of an internal investigation into smith's claims. >> from their perspective speak to who greg smith was, in goldman sachs' eyes. obviously when we all read the letter it speaks to why he felt that goldman sachs changed so much. why he wanted to leave the organization. but we had the opportunity to read both his evaluations from managers, self-evaluations -- >> internal e-mails. >> and then -- >> was it an inkwirly that was done with people in the firm or did they bring in an outside -- >> the

it's called "why i left goldman sachs."interesting read for anyone interested in wall street and the banking world. appreciate you coming in. thank you. >> thank you, piers. >>> coming up, a photo bomb for the ages. only in america. it's a very touching one, this. questions? anyone have occasional constipation, diarrhea, gas, bloating? yeah. one phillips' colon health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. approved! [ female announcer ] live the regular life. phillips'. at meineke i have options... like oil changes starting at $19.95. my money. my choice. my meineke. >>> the kid stays in the picture. the talking points. the prompter reads. the rallies. everything's planned and staged in this presidential race. but there's one thing obama and romney can't control. the wonderful,al always unpredictable photobombs. they strike without warning. here's the president and first qulad in the stands, completely blissfully unaware of the guy staring into the camera stea

goldman sachs' stock. the action begins right now. >> live from the nasdaq market site i'm mandy drury, sitting in for melissa lee. these are the traders here in times square. call it a day of pain on the 25th anniversary of black monday earnings whacked stocks and another heavy week for earnings on tap. is the carnage just getting started? the selling was broad based but particularly bad in tech and the high flyers. >> here is the thing. we started this week with this big rally. there was a lot of enthusiasm around financials earnings. as we broadened out and started seeing more out of tech, it got kicked off. you saw the disappointing reaction. forget the results but the reaction kept going. it started to spread to small tech names or small cap names but really started to take hold in some of the high flyers. to me at this point you have apple computer who has so much gains in the stock. it is still up 50% on the year. it made a new closing low from august 2. there is a lot of performance in the stocks.

goldman sachs is up 33% year to date. if you are nervous about potential head winds in november with the elections and that sort of thing it may make sense. what we are seeing today is taking profits. >> financials are up about 20%. certainly one of the big winners so far this year. dan is putting a put calendar on goldman. we crack open the play book. in the strategy we sell the daily put and use the money to buy the long on the same strike. you want the stock to be above the strike or put the strike before the expiration. so dan why don't you walk us through it? >> we use this last week. it worked very well for earnings. i want to do it again. we just showed this chart. it looks like a little bit of double top. there is a good bit of resistance. one of the things i wanted to do today because next week's october expiration there are weekly options. and they are pumped. they are elevated in volume terms for this event. i want to sell the october regular 1.15 puts and use the proceeds to buy the november put. i bought the

"why i left goldman sachs."nion was someone has come out and said, they got too greedy, too detached from reality and people and that is what got america he into the financial mess, and that was it. when i read the book, you gave your colleagues a 9. the highest score possible for culture and values. they say you wanted your pay doubled to more than a million dollars and a promotion. you left with the impression, given you've been there 12 years, really what this is all about is you feeling a bit peeved. >> not at all actually. the thing about the reviews, you actually get to choose who reviews you. the idea that people i gave nines two were the people that selected me to review them. it's not an issue of how i felt. it's an issue that i worked at the place for 12 years, i used to fly out to stanford twice a year and recruit kids to come there. this company that took microsoft public, to a company that has a $500 million settlement with the s.e.c. for fraud and people going to jail for two years. >> goldman sach

versus goldman sachs the op ed writing goldman defector greg smith is out with his new book he and lloyd blankfein have been hitting the airwaves today we'll talk about the highlights let's get to today's capital account. so last night were the u.s. presidential debates you did not see on network t.v. it was the third party presidential debate with candidates from the green justice constitution and libertarian parties and on the stage were issues that we have not heard about in the mainstream dools between romney and obama this includes money in politics cutting defense spending dramatically monetary collapse and the government's role in the student loan debt crisis so let's bring in our guests and use some of these economic and fiscal arguments to fuel ours here to talk about all of this is mike norman chief economist of john thomas financial and author and trader carle denning so gentlemen first thank you so much for being on the show today but you have me absolutely so let's just start i want to throw out a sound bite from gary johnson just to to play a little bit of what wa

i worked at goldman sachs my whole career.hat i say in this book is not supposed to be purely a reflection of goldman. this is -- goldman did not become worse than every other bank. in my mind, it became just like every other bank, meaning goldman used to turn away hostile takeovers. the goldman of ten years ago would not have done a deal with the government of libya and moammar gadhafi. we're on an even playing field. everyone's a big boy. we're all sophisticated investors. i guarantee you the teachers retirement fund or the charity or philanthropy is not coming to goldman expecting to get ripped off. they're looking for advice and a good product. >> why did they go to goldman then? if you could sit here and say all these things are, you know, not putting clients first and they've got, you know, all of these practices that are hurting investors, then why is goldman the top firm on the street? >> because goldman is no doubt the smartest firm on the street. when a pension fund or mutual fund needs advice or resources, they're g

look at goldman sachs. yesterday, but joe was talking about it earlier, very, very strong fundament l a.als fundamentals. >> cree, an l.e.d. light be company, soaring after topping fores k forecasts. >> sxand it's a name that pete d john and i used to talk about looking for the fundamental recovery. you're seeing the improvement in gross margins. ahead of what the street was looking for. looks like the trough is in. we guide higher for the next quarter. this stock targets 33. >> what's the rate on halliburton? stocks basically flat. profits down because of a slowdown in drilling. >> north america continues to bottom. international is strong. so the microtrade, you want to buy slumberge, sell halliburton, i think it's all in the process of bottoming. >> our next guest is one of the most respected market watchers in the world. jim o'neill is head of goldman sachs asset management with a surprising take on what a romney win could mean for the markets. mr. o'neill, welcome back. >> thanks for having me here. >>

and lloyd blankfein of goldman sachs.e break we were talking about the negative implications of not solving the failure. what's the upside? >> the predicate of united states' strength and influence in the world is a great economy. we have a huge opportunity. there are a lot of things that have turned very favorable for us. demographics have turned favorable to us. technology industries that we're strong in. and most importantly and most unforseen, the energy situation in the united states. so getting -- it's not just, you know, simpson-bowles and getting our budget in order is fine. there are other things like energy, too, which we have to sort out which if we do, we'll find the united states is in the best competitive position of anyone in the world and the best competitive position we've been in generations. >> erskine? >> the big problem we have is how do we get there? as long as we have this huge debt overhang, and as long as we don't bring our spending under control or increase our revenue, then we're not going to ha

that is just what dan did with his bearish trade on goldman sachs.an thought the giant was set for a plunge. >> this stock has had an amazing run. i would expect consolidation here. >> but shorting the stock? >> i advise caution on everything. >> so do we, lloyd. to define his risk dan bought the november strike put for $1.90. to make money dan needs goldman sachs to fall below that put strike price by more than the cost of the trade or below 113 by november expiration. do we want to pay almost $2? horrible. you got that right, lloyd. come on, dan. show us how to do this for less. >> i sold one of the october 115 puts. >> well done. so to spend less dan then sold the october 115 strike put for 50 cents and created his put calendar. he did something even better. he made making money easier and here is how. between the 1.90 he spent buying one put and the .50 he collected selling the other he cut his costs down to $1.40. now, instead of needing gold man's stock to fall below 113 to make money it needs to fall below 113.60 by november expiration. but it

i'm not being an apoapologist f goldman sachs. there are actors within these big banks and some banks who probably do not put their clients first and take them for granted. however, it leaves a bad taste in my mouth when i read so many stories about the go-go years and how mr. smith and company enjoyed them until, frankly, they decided they didn't. i do not know if this book is just a bunch of sour grapes over his compensation and promotions or the lack thereof. greg smith claims it is not. we can all make our own judgments on that. even if you don't believe the intentions are pure, this book should nonetheless be a wake-up call for wall street. the fact is, i do believe there are issues in the community. why else has the retail investor left the party? trust has plummeted. between the financial crisis, flash crashes, trading glitches, and debacles like the facebook ipo, it has taken a toll on the retail investor. bottom line, clients should be the priority, integrity should be the goal even at the expense of profitability. so boo

look where stockholders are valuing goldman sachs, morgan stanley, jpmorgan. lot of these companies are trading below liquidation, which tells you even investors don't like this business model. >> after you resigned and hit that send button, did you feel any moment of oh, my god, what did i just do? >> i actually felt very proud. what i wanted to do was spark a debate. what i don't think people realize is that the too big to fail banks are bigger now than before the crisis. if you had watched the debates the other night, or the last three, you would think some kind of landmark financial reform has occurred. less than a third of it has been implemented and three quarters of the deadlines have been missed. i would argue our politicians don't even have an objective enough view in this. look at who funds the political campaigns. look at this revolving door where an arthur leavitt, or jack seaward who used to work for tim dpr geithner, they work for goldman sachs. how are you going to get retail investors back because it doesn't feel like an even playing field. i a

the goldman sachs' partner reaction is, this is great news. the client is not going to pull their business, we're going to keep doing business with them. and my thought is, if you want an organization to last another 140 years and you have this short run mentality, why should you accept that clients don't trust you? >> goldman sachs has portrayed you as a disgruntled employee, who didn't get the bonus that you wanted, which was $1 million, and the year before you had gotten $500,000, which for regular folks, is insane numbers you're talking about. they say you're disgruntled. and you told anderson you would have done the exact same thing if you had gotten the bonus and if you had gotten the promotion to managing director. if you had gotten the bonus, you would go home and count your money and suck it for another year, at least. isn't it that you're just disgruntled? >> no, i started with 75 people and by the time i left, there were only seven left. and you are buying into a character assassination without actually asking goldman the hard quest

what he's saying is that goldman sachs or one of the points he makes is goldman sachs was not really protecting their clients. that they openly called them muppets -- >> not serving. >> and openly calling them muppets and he talks about not only do junior people do that their senior and hierarchically senior people would laugh about it. isn't that devastating? no? >> soledad -- >> it's a pretty crass and -- >> still a leader on wall street. even through this financial crisis, even through everything that has been heaped on them by senator in congress. if they weren't serving their clients every day, you know, to like 99% quality control, then they would not still be a leader on wall street. trust me. these are very sophisticated -- >> clients don't care about being called muppets by the junior people and senior managers. >> they want -- guess what? they don't. they care about whatever it is that wall street can provide when they go to wall street to get. they don't care about what somebody says behind their back at midnight. >> they care about money. they care about money. >> and the

membership at soho house it was like it was as if she was channeling goldman sachs's p.r. department in the day before that or a few days before that they had the head of h.r. right so basically in the first and foremost thing i want to make clear is that you can't go to these mainstream news outlets and expect to get a conversation about what most people care about with respect to wall street what you're going to get at the end of day is they're all saying that what most people care about with regards to wall street is what's really going on and the issue is not the character of greg smith yeah exactly people look maybe there's a disgruntled employee they want to hit by goldman sachs five but he was actually bringing up a really good important point it was a gift an opportunity for stephanie ruhle or anyone else of bloomberg that actually broached this discussion but of course she was going to do that i wasn't expecting her to really know i mean she's she's in the making industry she probably has much of a very valid insight that maybe somebody else would not but i don't

former employees tend to be very loyal to goldman sachs. s one that was far different. >> but goldman says smith's voice is just plain wrong, glick a statement to nbc news, "mr. smith's op ed portrayed firm that sun recognizable to us and directly opposite to the culture we work hard to foster but we took his claims seriously and conducted a thorough review of them. that review found no evidence to support his claims but did find mr. smith appeared to be frustrated about his career and future pros speak the goldman sachs." savannah? >> well, thank you. greg smith is with us now. he writes more about his time on wall street his new book "yes left goldman sachs." good morning. >> good morning. >> you went out with a bang. you wrote this op ed. what was your go? did you want to embarrass the firm? >> not at all. actually, you know, i worked at this place for 12 years, i put a lot of heart and soul in it. i used to fly out to stanford twice a year to recruit students but the mentality shifted from one where you were servicing clients to one wher

goldman sachs over in barron's over the weekend it was talking about the fact that goldman sachs hasme under scrutiny during the financial crisis and such, but really the growth potential is pretty good in that their capital they have and their outlook as the business is improving looks really good so upside potential of at least 25% in the next year. ibm that's a winner, upgraded at deutsche bank. netflix they will have the new just for kids now available on the ipad. kraft foods now on the s&p new high. back to you. connell: thanks nicole. dagen: as a new month begins, can stocks keep the momentum going? connell: that's right. it is october 1st. sandra smith at the cme in chicago with the trade today. hey sandra. sandra: hey, dagen and connell. actually here's a full screen we made that gives you the big picture as far as asset performance for the month of september global equities were very strong, up 3.2%. outperforming commodities which fell over a percent. the dollar fell 1.6%. and the equities even outperformed the bond market, which rose just 3/10 of 1%. i've got a trader her

forward there might be a good use for this kind of financial derivative and so they created the goldman sachs commodity indexes it's not only goldman it's barclays is deeply into this deutsche bank all the largest banks in the world have perceived where the value is going to lie and so this is not this financial instrument actually went counter to the entire purposes of the commodity markets commodity markets are are those markets which worked well for more than one hundred years particularly in this country stabilizing the price of food these financial derivatives were based on the commodity markets but actually have had a tremendously destabilizing effect both causing bubbles market manipulation and tremendous volatility hurting both the industry and the consumer and actually anybody involved in the food business except the bankers and the traders you know the commodity markets correct me if i'm wrong were originally created because farmers were routinely going bust in the in the early one nine hundred seventy three and and and bakers people who used to farm products were going bust when th

goldman sachs -- you would if you had gaps. anyway, goldman sachs is probing in to allegations made by an ex-worker reportedly turned up nothing. greg smith who wrote a scathing called the bank a toxic place. the financial sometimes says goldman's review found weeks before he quit, smith complained about his bonus. he's written a book about his time at gold man which will be published in a couple weeks. >> 4,000 e-mails turned up with the use of municipal mppet -- >> how many times has the word muppet used at goldman sachs. >> and we'll talk about that in a second, as well. >> our very own steve liesman has an exclusive interview today with the goldman sachs ceo lloyd blankfein plus the co-chairs of president obama's deficit commissionity, simpson and bowles. they'll discuss the fiscal issues. that's at 12:30 eastern on fast money halftime report. so don't miss that. >> and still to come here, christine lagarde has harsh words about austerity. we'll head back out to cadd ere cadre oig in tokyo after the break. kadri in tokyo af

part with them let's remember greg smith for a moment before we go remember he was the former goldman sachs executive director who resigned very publicly in his new york times op ed in his i quit letter greg smith a mid-level executive for goldman sachs said he was sick of a culture where clients were called muppets and employees were expected to hunt elephants by getting clients to make big trades that led to big profits for goldman . so we don't have much time dimitri but this is a war of the muppets because greg smith is publishing his tell all book it's coming out soon we're trying to get him on the show come on greg and goldman sachs is firing back a head of the book saying that he wrote the op ed after being denied a raise to a million dollars in a promotion so they're totally taking the typical oh this is just a disgruntled employee kind of sneering attack what do you think i don't know the parts of the book that i have at least seen tease they don't really seem that and for all and if you could do that better job well you know what why aren't when i read the story of course i was at

goldman sachs, you're totally separating it out from the rest of the banks right now. morgan stanley is the kwauzry they investment bangor retail broker or what are they? they're still searching. i think if you look for all the different names i think wells fargo has the upside and will break out of the range it has been pushing. >> the worry in europe is shaking up the market. is china actually the bigger threat in even the greek stock market is out performing the shanghai composite this year. will china be ai believe to avert a slowdown in q4. let's bring in the global head of equity strategy michael hurt live on the fast line and joins from us hong kong. welcome to the show. good to have you on halftime. >> thanks very much. good to be with you, scott. >> where does china sit today. >> caller: china sits probably at the very bottom of its business cycle. it clearly has been part of a trifecta much global concerns for equity markets, europe probably being number one, and on going questions about the durability of the u.s. recovery and china and the structural slowdow

and was employed by goldman sachs to their money i am an algorithmic robot i do not know why i have to do what i did my brain has been programmed by lloyd blankfein m.d.m.e. diamond to steal money please your honor do not put me what the other robots in the robot of jail plans plans i am going to sit around or i'm going to see. the program placed orders in twenty five millisecond bursts involving about five hundred stocks according to now next the market data for the algorithm never executed a single tree and it abruptly ended at about ten thirty am friday which is probably when maddux first made this information public and it just immediately shut off to disappear at any trace of its crime but amazingly the crash of ninety days seven was caused by algorithmic trading gone amok so their response they made it through more faster so they're putting even greater risk into this is systemic risk and causing more problems that's the last and so far during the crisis which actually goes back to that i think it's time to start my request the lessons of then make it faster make it more dangerou

intestines of the new york stock exchange and he was getting fat and stealing money along with goldman sachs and barclays and who is this new guy in town. martin schlumpf long on. harm schilling's longer martin wheatley martin we played here in the u.k. he's a parasite crawling up on the alimentary canal of the banking system in gorging himself on the fraud he's getting fat martin wally on the fraud he's a parasite martin wavelength well again max the motive of the algorithm remains unclear there is other stuff going on clearer about the motive of the other of them it's about stealing money doesn't always design those ways right and they get all those sharpies down there in the city in the wall street at mit and stanford university to create algorithms to steal money that's not us it's how do you say oh we just accidentally make money again every single day for ninety days in a row we're reporting this is to remain what i believe it is are actually deadly no accidentally found this wall of pull money in the same spot every single day for the last ninety days that's not an accident that's cal

goldman sachs showing a 1575 s&p for 2013. first they think we'll see a 15% pull back before the end the year because the fiscal cliff uncertainty. are they right on both calls? guy, what do you think? >> that's fascinating. we used to trade something in options called knock ins and knock outs np is what that's setting up for. >> is this about women? >> don't know how to take that. this is a family show. i don't know where you're going with that. i lost my train of thought. >> knock ins, knock outs. >> the first move is up to 1525 and we'll talk after that. i'll be hard pressed to believe they can be right on both these calls. pretty amazing move to see us come off 150 or so s&p. >> 200 points. morgan stanley is worse. they think it goes to 1175. >> we had him on a number of times. he's steadfast in that belief. i'm in the camp put one foot in front of the other and foot i'm putting in front of the other is 1525 then we'll talk. >> for the end of next year. >> this year. next year? listen 2012, the mayans. >> dr. j., is fiscal

. >>> the man who took on goldman sachs opens up for the first time and daredevil felix baumgartner tells us what he was really afraid of. >>> we begin this morning with today's "eye opener," your world in 90 seconds. >>> the campaign can require a lot of wardrobe changes but it's nice to finally relax and wear what ann and i wear around-the-house. >> mitt romney and president obama campaigned for laughs at a charity fundraiser. >> actually mitt is his middle name. i wish i could use my middle name. >> in the spirit of "sesame street" the president's remarks are brought to you by the letter o and the number 16 trillion. >> it begs the question what are we doing here? >> the entire student visa program has come under fire after a student tried to blow up the federal reserve. >> google went down 9% on thursday costing investors $20 billion. >> tigers are going to the world series. >> welcome to oklahoma. a dust storm shut down part of i-35. looks like something out of the dust bowl. >> we have the video of a pro wrestler springing into action on a light train rail to stop a crime. >> a gian