Amidst the Economic Turmoil, How did GS stand? 08 Annual Report

Have you taken a look at Goldman Sachs' 2008 Annual Report?....Gee they'd be able to convince you that you were dead. CEO Banks wrote in the letter to the shareholders most of the facts, however when covering aspects of total losses...he more or less diverted his attention to what they were doing to fix the problem, instead of ever going into the sheer facts and numbers of how bad this year was for them. Overall I would consider the letter to the shareholders a slick marketing piece, and the rest of the figures and data to be more economical and informative.

The annual report is posted right on the GS website. The document is 162 pages long. So unless you actually care, or are stranded on a desert island with only the annual report...it's not really that much fun to read. However, the report is very informative, goes into detail not just numerically, but it exquisitely specifies and explains all major and minor facets of the organization.

The letter to the shareholders came from CEO Banks. He starts the letter off explaining the overall impact the recession has had on our nation and specifically to the global equity and credit markets. After explaining the negative news of revenue drops of over 50%, Banks went on to articulate the changes and overall plan Goldman Sachs has created to excel during these difficult times.

Overall, the tone of the letter to the shareholders is one of honesty and positive outlook. Banks describes the facts and doesn't get caught up on the negativity, but rather gives promise to its shareholders that there is good to come and to keep their trust in them.

In a yahoo finance article that has since expired, it accurately depicted the view of Banks and was an appropriate summary of the letter to the shareholders. It portrayed it as if one of Goldman Sach's employees had been next to the journalist. However, it was easier to understand. Just like Banks, its purpose was to instill confidence, hope and promise to its shareholders. The bad news was mentioned, but not the focus of the piece. The quote from the CEO was about the company loss and also about the future of the company and how they have developed plans to escape the recession and not be a complete victim to the economic turmoil.

Overall, I believe that Goldman Sachs did a good job in their annual report. As a non-share holder and someone new in the world of investor relations, it was easy to understand and portrayed the company in a positive light amidst the negative state of the economy

Videos!

Here are some great links to videos of different opinions on Goldman Sachs, the economic crisis

How Goldman Sachs Survived

Obama working for Goldman Sachs?

Max Keiser takes Offense to Goldman Sachs Story Part 1

Part 2

Constant Criticism

Being one of the biggest financial corporations in the world...everyone becomes a critic of Goldman Sachs. This is one of the reasons why I became so intrigued by them. They are constantly in the media, however not in the way that other companies are portrayed in the media.

Goldman Sachs rarely puts itself out to the media for quotes or opinions, so when they do speak, its scrutinized to every huff, puff, period, sigh and eye roll. Several sites, mainly this one, are so anti-goldman sachs that they have attracted attention daily from people within Goldman Sachs to shut them down.

This page of Rolling Stone, is made by Matt Taibbi, who wrote "The Great American Bubble Machine" in Rolling Stone. It has recieved an incredible amount of media attention.

The Facts

In 2009, 43 Goldman Sachs offices partnered with 828 nonprofit Community Partners worldwide.

Over 22,800 Goldman Sachs people joined with family and friends to contribute over 134,247 hours to the communities where we work and live.

Volunteers participated in 1,778 projects and assisted 12,430 infants, 69,546 children, 36,798 adolescents, 33,453 adults, 13,756 elderly, 33,491 persons with disabilities/special needs and 13,795 animals;

volunteered at 182 community events; painted 102 murals, 219 rooms and 34 community buildings; renovated 80 rooms;

renovated and helped build 56 community buildings/homes and 19 playgrounds; built 13 homes with Habitat for Humanity;

beautified 35 beaches and 104 parks; planted 278 gardens, 1,378 trees and 49,356 flowers; served 27,480 meals;

packaged 170,197 lbs. of food; delivered 64,948 meals; constructed 3,000 yards of fencing; beautified 934 acres and 25 miles of land.

GS in the Community

The people of Goldman Sachs are committed to assisting those in need and the communities around the world through volunteer endeavors and partnerships with nonprofit organizations.

Goldman Sachs helps serve the community through multiple outlets.

Public Service Program

Goldman Sachs Foundation

Employee Giving

Community TeamWorks

The Community TeamWorks (CTW), its signature volunteer program, embodies this commitment and gives their employees time off from work each season to volunteer in a team-based project coordinated with local nonprofit organizations. Each year, CTW offers innovative volunteering opportunities worldwide This program allows each person one day away from work to volunteer on a team-based project with a non-profit organization. In 2009, over 22,800 Goldman Sachs people joined with family and friends to contribute over 134,247 hours to the communities where they work and live. This helps make a tangible difference in the community and that foster inter- and intra-divisional camaraderie within the firm.

Goldman Sachs launched the Public Service Program in 2004. The program underscores their commitment to leadership and expands the platform for their people to be catalysts for change in their community. Public Service Program Fellows are selected and given paid leave for one year to serve at organizations aligned with the firm's corporate engagement interests.

These fellows have created organizations that embody and continue to promote Goldman Sachs commitment to leadership and philanthropy.

Sometimes, and more often lately, Goldman Sachs gets criticized for the high salaries given to its employees. Goldman Sachs has two programs to enhance its reputation in this aspect. It has the Employee Giving program and the Goldman Sachs Foundation.

The Employee Giving, also called Goldman Sachs' Matching Gift Program, encourages employees to support their favorite charitable organizations. Employee gifts up to USD $20,000 are matched on a 1:1 basis per employee per calendar year to eligible nonprofit organizations.

The Goldman Sachs Foundation was funded in 1999 with a $200 million donation from The Goldman Sachs Group, Inc. The Foundation's mission is to promote excellence and innovation in education worldwide. The Foundation, administered by the Goldman Sachs Office of Corporate Engagement, is an important extension of the tradition of philanthropy and public leadership at Goldman Sachs. Grants have been awarded in excess of $114 million since its inception, providing opportunities for young people in more than 20 countries.

Some ways this money is spent is through scholarships as well as conferences and learning seminars for youth around the world.

CEO Blankfein

Goldman Sachs Chairman and Chief Executive Officer:

Mr. Lloyd C. Blankfein

As according to the Goldman Sachs website....

"Mr. Blankfein has been our Chairman and Chief Executive Officer since June 2006 and a director since April 2003. Previously, he had been our President and Chief Operating Officer since January 2004. Prior to that, from April 2002 until January 2004, he was a Vice Chairman of Goldman Sachs, with management responsibility for Goldman Sachs’ Fixed Income, Currency and Commodities Division (FICC) and Equities Division (Equities). Prior to becoming a Vice Chairman, he had served as co-head of FICC since its formation in 1997. From 1994 to 1997, he headed or co-headed the Currency and Commodities Division. Mr. Blankfein is not on the board of any public company other than Goldman Sachs. He is affiliated with certain non-profit organizations, including as a member of the Harvard University Committee on University Resources, the Advisory Board of the Tsinghua University School of Economics and Management and the Governing Board of the Indian School of Business, an overseer of the Weill Medical College of Cornell University, and a director of the Partnership for New York City and Catalyst."