NYT Op-Eds, Insider Trading and … Banks Taking Tests? The Market, March 16, 2012
As we see it, this was a week of fantastic flame-outs.
One of the biggest headlines was the resignation of Greg Smith, a 33-year-old junior executive at Goldman Sachs—and oh, did he ever go out with a bang. His op-ed in the New York Times, where he announced his resignation, was so scathing that Goldman Sachs’ value fell by $2.15 billion as a result.
Meanwhile, a partner at the consulting firm A.T. Kearney pleaded guilty to insider trading yesterday; he allegedly made more than $25,000 in profits from doing so, and tipped off a relative, who made another $12,000 in profits. He faces up to 20 years in prison.
China’s economic and political future rests on another personality struggle: A top official in China’s Communist Party was ousted, bringing to light potential tensions between hardliners and liberals.
Personal endings aside, this has also been a great week economically.
The stock market rose, with the S&P 500 topping 1,400 for the first time in almost four years; the number of people filing for unemployment fell, another sign that the U.S. labor market is improving; recent IPO activity has indicated strength in the U.S. IPO market, after a rough January and February; 15 of the country’s 19 biggest banks passed their federally-mandated stress tests.
Here are some of the top stories you should know about in The Market:
Quit Your Job … Cost Your Company $2 Billion?
This week, a top Goldman Sachs exec quit in an op-ed in the New York Times, costing his company big-time in the process. Here are his top grievances against the finance behemoth—and Wall Street greed in general. Hear him out.
How Does Your Generation Stack Up?
Experian has released the results of a study explaining how credit scores and debt stack up between generations. How does Gen Y compare to Gen X and the Boomers? Find out.
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